The price-to-income ratio of housing in the European Union (EU) has increased by 6.8% in 2025 compared to 2015, indicating a rise in housing prices relative to household incomes over this decade. This increase has varied significantly across different countries within the EU, with the ratio rising in 17 EU countries and decreasing in 10 others.
Analysis of Changes in the Price-to-Income Ratio of Housing
The price-to-income ratio of housing compares changes in housing prices with changes in per capita household income and is assessed against a base year. This ratio increases when housing prices rise faster than incomes, and vice versa. According to the data, between 2015 and 2025, Portugal recorded the highest increase at 60.8% in the price-to-income ratio of housing. Following Portugal are the Netherlands at 34.3%, Hungary at 26.5%, the Czech Republic at 25.8%, and Spain at 24.5%.
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Decrease in the Price-to-Income Ratio in Some Countries
On the other hand, Romania experienced the largest decrease at 42.8%. Additionally, Finland at 25.2% and Bulgaria at 16.2% follow. These figures reflect changes in prices relative to income changes over time and therefore cannot assess countries based on housing costs relative to income in absolute terms.
Another method to understand housing affordability is the standardized price-to-income ratio of housing. This ratio indicates whether the housing price index relative to household income is above or below its long-term average since 2000. The data show that there are two clear peaks: in 2007, before the global financial crisis, and in 2022. In these years, the price-to-income ratio of housing was 7.9% and 7.4% above the long-term average, respectively.
Between these two peaks, the ratio fell to 6.4% below the long-term average in 2014 and then increased again. After 2022, this ratio decreased in 2023 and 2024 and then returned to 0.03% above its long-term average in 2025.
The standardized price-to-income ratio of housing helps identify potential imbalances in the housing market over time and is therefore used as an auxiliary indicator in the macroeconomic imbalances procedure (MIP) scorecard.
The price-to-income ratio of housing and its standardized version describe one dimension of housing affordability. Other complementary dimensions include the number of years of income needed to purchase a home and the cost of financing the purchase through a mortgage. Ongoing housing costs are also covered by other Eurostat indicators, such as the share of housing costs in disposable household income.
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