Residential real estate in Europe - statistics & facts
Do Europeans buy or rent?
Homeownership varies widely across Europe. The DACH countries (Switzerland, Germany, and Austria) have some of the lowest homeownership rates in Europe, with less than 60 percent of the population living in an owner-occupied home. A share of households in these countries rent long-term, contributing to a mature rental market. In Norway, the Netherlands, and Sweden, owning a home is more common than in the DACH countries, thanks to a higher mortgage penetration. All three countries had a homeownership rate greater than 70 percent, with over 50 percent of households repaying a mortgage. Meanwhile, in many Eastern European countries, such as Romania, Slovakia, and Croatia, homeownership is commonplace, and the rental and mortgage markets are less developed. These differences depend on many factors, such as affordability, government policy, economic incentives, and family structure. Additionally, within countries, urban areas and especially capital cities where house prices are higher, tend to have lower homeownership rates.How much does a home in different European countries cost?
In some of Europe’s biggest economies, Austria, France, and Germany, the average property price in 2022 ranged between 4,500 euros per square meter and nearly 5,000 euros per square meter. However, country averages can be misleading, as the housing markets in individual cities can be especially competitive, resulting in significantly higher prices. In Geneva, London, Zurich, and Luxembourg, the average price for an apartment exceeded 11,000 euros per square meter and went as high as 16,000 euros per square meter in 2023. For many city dwellers, these prices are not affordable, resulting in a high demand for rental accommodation and a growing market.Whether it is rental or owned housing, insufficient supply in the high-demand markets is one of the greatest challenges in the European housing sector. While a future decline in mortgage interest rates may bring hope to aspiring homeowners, chronic undersupply will likely continue to drive up prices.