Rent eats up salaries: housing has become the main financial burden in the EU

Housing expenses remain the largest cost item for households in the European Union, according to Eurostat data. On average, 23.6% of all Europeans' expenditures go towards housing, water, electricity, gas, and other utilities, while rent in major cities is becoming increasingly unaffordable.

The situation is particularly severe for workers earning the minimum wage. According to an analysis by the European Trade Union Confederation based on EU data, the cost of renting a two-bedroom apartment in most European capitals exceeds the gross minimum wage.

In several cities, renting is virtually unachievable without additional income. The most difficult situation was recorded in Prague, where rent reaches 185% of the minimum wage. In Lisbon, this figure stands at 168%. More than 150% of the salary goes towards housing in Budapest, Bratislava, Sofia, Athens, and Riga as well.

In many European capitals, rent exceeds 100% of the minimum income — including Paris, Madrid, Warsaw, Dublin, Tallinn, and other cities. For instance, in Paris, the average rent is 2,523 euros against a minimum wage of 1,823 euros, and in Madrid — 1,721 euros against 1,381 euros.

Only a few capitals remain more affordable for low-income workers. In Brussels, rent is equivalent to 70% of the minimum wage, and in Berlin — 76%. A relatively lower burden was also recorded in Nicosia (85%) and Luxembourg (87%).

Representatives of the European Trade Union Confederation warn that the gap between income and housing costs is becoming unsustainable and is driving workers into financial distress. According to them, the rise in housing prices, combined with more expensive energy and food, lowers the quality of life and limits the ability to save money.

At the country level, the situation looks slightly better, but rent still "eats up" a significant portion of income. Depending on the state, between 33% and 61% of the minimum wage is spent on housing. For example, in Poland, this figure is 33%, in France — around 38%, and in Spain — 48%.

Experts note that capital city housing markets are becoming a key factor of social pressure in Europe, worsening inequality and reducing the affordability of living in major cities.