A new study exposes a stark reality for millions across Europe. In cities like Madrid and Paris, average earners can no longer afford even a small apartment. The research highlights how rising prices and stagnant wages are pushing home ownership and even renting out of reach for nearly half the urban population.
In Madrid, Paris, and Berlin, owning a modest fifty square meter apartment is now out of reach for most people. A recent analysis by TU Wien found that 44% of urban Europeans live in cities where the average salary is not enough to buy even a small studio or one-bedroom flat.
The numbers are just as bleak for renters. The study shows that 39% of people in these cities cannot afford to rent a fifty square meter apartment on a typical income. The problem is worst in capital cities and tourist destinations, where housing prices have grown 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 rent for a space this size.
The TU Wien study analyzed over 22 million property listings across 31 European countries between March 2024 and March 2025.
Researchers looked at more than 21 million property listings in 31 countries, comparing sale and rental prices from March 2024 to March 2025 with average local incomes. Their findings reveal not just differences between countries, but sharp divides between city centers, coastal areas, and rural regions. Because the study uses regional averages, the situation for lower-income households is likely even worse, as higher earners pull the numbers up.
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, erasing any previous advantage. In Ireland and Italy, renting now costs more than buying with a mortgage, which is a reversal of past trends.
Even a thirty-year mortgage does not solve the problem. The study found that over 70% of Europeans live in regions where such a loan would only buy up to seventy-five square meters—well short of the space many families want. This is especially tough for 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.
The official statement from TU Wien describes the situation as a European housing crisis, emphasizing that the problem is evident not only in capitals but also in tourist and coastal regions. Calculations based on regional average incomes likely underestimate the severity for low-income households, as noted by the researchers.
Tourist-heavy coastal and mountain regions face extra 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. The researchers suggest stricter rules for tourist rental platforms and limits on second-home ownership in the hardest-hit areas, but these are only recommendations for now.
As city centers become unaffordable, people look to nearby towns, which drives up prices there too. This pattern is not limited to 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 these efforts are small compared to the scale of the problem. The TU Wien study, published in the Journal of Maps, makes it clear: without major changes, millions will continue to be shut out of secure, affordable housing. The data points to a system where speculation and slow policy have left ordinary people behind.
