A large number of Europeans have no other way to cover their mounting housing costs other than to cut back on food, according to a new study.
The New Housing Trend Report 2024, compiled by the estate agency RE/MAX Europe, found that more than one in 10 Europeans had to cut back on food and basic everyday items in order to pay for their housing over the last year.
The consumer survey of thousands of participants found that housing costs have soared on average by 54% in Europe over the last 12 months. More than one-third of Europeans (37%) said that while they were coping, and could afford their housing costs, money remained tight. Almost one-fifth (19%) said they were struggling to make ends meet.
On average, European households spend 38% of their income to cover rent or mortgage payments and utility bills, with the highest percentage measured in Slovenia (43%) and Portugal (42%). However, people living in Switzerland, for instance, reported a lower burden (30%).
To be able to cover the increasing housing costs, 80% of the people in the survey said they had started cutting back on their expenses.
Some 41% of the responders decided to save on social activities, while 40% had reduced spending on holidays and luxury items.
Of those responding to the survey, some 16% declared that they had cut back on food bills, with the highest proportion, 26%, in Austria and Finland.
When cutting back is not enough…
Meanwhile, 15% of Europeans reported that they had been forced to resort to some form of borrowing to cover their housing expenses. This trend is most pronounced in Turkey (32%), Bulgaria (22%), and Romania (20%).
Around one-third of those using loans chose to fund their housing expenses with credit cards, and slightly less, 27%, turned to family and friends to get the necessary funds. One-fourth of respondents used overdrafts, and slightly fewer (23%) chose to ask for unsecured bank loans to cover housing costs.
And with an uncertain future, nearly half (48%) of respondents across Europe said that they anticipate further increases in housing costs over the next 12 months.
In response to the bleak outlook, a significant proportion of Europeans are considering drastic changes; a more affordable life would be enough for 32% of the people to move to a smaller city or town, and 24% are ready to move abroad for the same reason. However, some 21% of them were not open to moving at all.
Sustainability remains a low priority in households
Of those questioned in Europe, 18% said that they struggle to pay their energy bills, and this proportion was particularly high in Greece, where 36% of residents are facing severe difficulties managing their energy expenses.
Due to the already high costs, eco-friendly home improvements have taken a backseat in many households, whose priority remains paying the immediate bills, rather than long-term sustainability.
There is still more than one-fourth of the respondents (27%) considering installing solar panels, and slightly fewer (25%) would install double glazing. Rainwater capture measures and heat pumps are less of a priority, only one-fifth of people saying that they would consider installing them.
Almost half of those questioned said that increased government support or subsidies could motivate them to install energy-efficient measures.
Where in Europe are people happy with their housing costs?
Despite the concerns about housing costs, satisfaction rates with housing remains high in many parts of Europe.
Those in the Netherlands and Romania are the most content with their housing situations, with 84% of the people quizzed saying they were satisfied. There is a relatively high rate of homeownership and good quality of housing available in these countries, which may explain the result.
On average, 76% of Europeans are happy with their housing. At the other end of the scale are those in Malta, the Czech Republic, Slovenia, Hungary, Turkey, Greece and Ireland.
Dissatisfaction stems from various issues, for instance, the need for more space is a key concern, especially in Poland, where 58% of residents cite this as the cause of unhappiness with their living circumstances, which compares to the European average of 37%.
Cost is another major issue, one-third (33%) of dissatisfied responders said that their property is too expensive. This rate is as high as 53% in Malta, 48% in Ireland, and 48% in Finland.
Additionally, almost half of dissatisfied residents in Portugal reported problems with dampness or mould, while one-fifth cite issues with hygiene and pests as the main problem in the Netherlands.
