Home expenses account for one-fourth of the German euros spent.
Living in Germany ain't cheap, especially when it comes to housing! A statistic reveals that, on average, Germans spend around 25% of their income on housing-related expenses—that's every fourth euro! This eye-opening data comes from the European statistical office, Eurostat, and was assessed upon request by the Federal Statistical Office (BSW) in Germany, according to ntv.de & AFP.
The Europe Housing Price Withdrawal 🇩🇪
When compared to other European nations, homeowners and renters in Germany are among the most spent-up. Last year, they spent 24.5% of their income on rent and other housing costs, a whopping 5.3 percentage points more than the EU average! Although the figures displayed a slight improvement compared to 2023, Germany is still considered one of Europe's pricey housing market leaders, the BSW stated [1].
Countries, such as France, Austria, and the Netherlands, show significantly lower values, making it clear that it's possible to live more affordably. People at risk of poverty in Germany actually spent an average of 43.8% of their income on housing, almost every second euro, it was disclosed. 😲
Who Spends the Most on Housing in Europe? 🤔
In 2024, the average percentage of housing costs was significantly higher in Denmark (26.3%) and Greece (35.5%) than in Germany. However, Sweden was more comparable, followed by notably affordable rates in Cyprus (11.4%), Malta (12.5%), Italy, and Slovenia (each 13.6%). The EU average was 19.2%.
Hit the Brakes on Rent Prices!
- To address the high housing costs consuming a quarter of Germans' income, there might be a need to implement a community policy focusing on vocational training for individuals to improve their personal-finance management.
- As it's clear that countries like France, Austria, and the Netherlands have significantly lower housing costs, the importance of exploring and implementing similar housing market policies in Germany becomes prominent.
- Despite the slight decrease in housing-related expenses compared to the previous year, Germany still experiences high housing costs, which is a concern even when compared to the average of Eurostat data in other European countries.
- In light of the looming housing price disparity in 2024, with Denmark and Greece predicted to incur higher housing costs than Germany, it's crucial for the German government to develop strategies focusing on affordable housing and financial support for low-income householders in order to reduce the burden on personal finances.