In Madrid, Paris and Berlin, a modest 50-square-meter apartment is beyond the reach of many people. A recent analysis by TU Wien found that 44% of urban Europeans live in cities where the average salary is too low to buy even a small studio or one-bedroom flat.
The figures are just as stark for renters. The study found that 39% of people in these cities cannot afford to rent a 50-square-meter apartment on a typical income. The problem is sharpest in capital cities and tourist destinations, where housing prices have risen far faster than local wages. In Madrid, Paris, Berlin, Dublin, Lisbon, Warsaw, Prague and Budapest, more than 65% of residents spend a third of their salary and still cannot cover the rent for a home this size.
Researchers examined more than 21 million property listings in 31 countries, comparing sale and rental prices from March 2024 to March 2025 with average local incomes. A TU Wien statement says the study analyzed over 22 million listings across 31 European countries during that period. The findings show sharp divides between city centers, coastal areas and rural regions, alongside differences between countries. Because the study uses regional averages, lower-income households are likely to face an even tougher situation: higher earners pull the figures up. TU Wien's official statement calls this a European housing crisis and notes that it affects capitals as well as tourist and coastal regions. The researchers also warn that calculations based on regional average incomes likely understate the pressure on low-income households.
Portugal, the Netherlands and Switzerland are among the countries where average earners are priced out of both buying and renting. In Poland and Hungary, incomes are lower, but property prices have risen quickly, wiping out any previous advantage. In Ireland and Italy, renting now costs more than buying with a mortgage, reversing past trends.
Even a 30-year mortgage does not solve the problem. The study found that more than 70% of Europeans live in regions where such a loan would buy a home of no more than 75 square meters, well short of the space many families want. The squeeze is especially hard on first-time buyers and people who need to move for work. Many young adults with steady jobs still cannot afford to leave their parents' homes.
Tourist-heavy coastal and mountain regions face added pressure. In Spain, France, Portugal, Greece and Croatia, the growth of second homes and short-term rentals has reduced the supply of affordable housing for locals. Researchers recommend stricter rules for tourist rental platforms and limits on second-home ownership in the hardest-hit areas, but these remain proposals.
As city centers become unaffordable, people turn to nearby towns, pushing prices up there too. The pressure reaches beyond housing. As reported earlier, some governments have started financial aid programs in response to economic pressures, but these rarely address the deeper causes of the housing crisis.
In Spain, the problem is especially severe along the Mediterranean coast, where local families now compete with investors and tourists for fewer available homes. Some regional governments have introduced rental assistance and income-based subsidies, but the efforts remain small compared with the scale of the problem. Published in the Journal of Maps, the TU Wien study points to millions still shut out of secure, affordable housing without major changes. Its data describes a system where speculation and slow policy have left ordinary people behind.
