EU House Price-to-Income Ratio Rises 6.8%
Housing affordability across the European Union has shifted unevenly, with the ratio rising in 17 countries and falling in 10 from 2015 to 2025.
Updated on Nov. 9, 2026 in Residential
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The house price-to-income ratio in the European Union was 6.8% higher in 2025 than in 2015, according to the latest figures. The ratio rose in 17 EU countries and fell in 10 over the same decade.
Why it matters
The ratio compares house price changes with household income growth, so a rising figure signals that homes have become less affordable relative to earnings. The divergence between countries means buyers in some parts of the bloc face very different conditions than those in others.
Portugal recorded the largest increase at +60.8%, while Romania recorded the largest decrease at -42.8% over the same decade. The source does not identify the specific causes behind these divergent national trends.
The details
The standardised ratio, which measures whether affordability sits above or below its long-term average since 2000, peaked at 7.9% above average in 2007 and again at 7.4% above in 2022. By 2025 it had edged back to just 0.03% above its long-term average.
Timeline
2007: Standardised ratio peaked 7.9% above its long-term average before the financial crisis.
2014: Standardised ratio dropped to 6.4% below its long-term average.
2022: Standardised ratio peaked again, 7.4% above its long-term average.
2025: Standardised ratio returned to 0.03% above its long-term average.
Market Landscape
The standardised ratio's 2007 peak of 7.9% above its long-term average preceded the financial crisis, and the 2022 peak of 7.4% above average shows the series has repeatedly reached similar highs. The 2025 reading of 0.03% above average places affordability close to its long-run norm rather than at the levels seen before earlier downturns.
Buyers and renters across the EU face differing affordability pressures depending on their country, with the ratio rising sharply in Portugal and the Netherlands but falling in Romania and Finland. Prospective homebuyers should compare local house price trends against their own household income growth when planning purchases.
The takeaway
Affordability is not moving uniformly across Europe, so the same headline figure can mean very different things depending on where you live. Comparing local house price growth with local income growth gives a more accurate picture than the EU average alone.
Further reading
Explore more on Residential real estate trends across regions.
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