Where Housing Costs Weigh Most on Households

Housing affordability is uneven across the EU, according to Eurostat. Across the EU-27, an average of 8.2 percent of people spend more than 40 percent of their disposable income on housing. That figure masks considerable differences between countries: Greece stands out at 28.9 percent, while Croatia is at the other end of the spectrum at just 3.7 percent.

These differences can have an influence on labor mobility and local quality of life. In countries where housing takes up a disproportionately large share of income, workers in low-wage sectors such as hospitality may face particular pressure. The problem is especially acute where housing costs are high relative to wages. Over time, hospitality workers may no longer be able to afford to live in popular tourist areas, worsening the sector’s existing shortage of skilled staff.