Rents costing up to 80% of wages in Europe

A study has shown rents have reached up to 80 per cent of median wages in parts of Europe.

Research carried out by Eurostat shows 10 per cent of people aged 15–29 are overburdened by housing costs, compared with about eight per cent of all age groups.

In Denmark, nearly 29 per cent of young people face housing cost overburden, compared with 15 per cent of the population overall.

In the Netherlands, the rate for young people at 15 per cent is more than double that of all ages.

The European Commission estimates that the EU will need more than two million homes per year to match the current demand. This means adding about 650,000 homes per year to the 1.6 million built currently.

Between 2013 and 2024, house prices in nominal terms increased by more than 60 per cent across the EU, growing faster than household income, while average rents rose by around 20 per cent.

Residential building permits are down by 22 per cent since 2021, and the existing housing stock is not used to its full potential, with around 20 per cent of dwellings unoccupied.

Clinicians from Flow Neuroscience, a company that develops brain stimulation tools for depression treatment, say these pressures are affecting a whole generation and are creating a need for a more accessible form of care.

“The science suggests that unaffordable housing contributes to the mental health crisis by keeping people in a constant state of stress. When housing is insecure, the mind stays focused on survival rather than growth, creativity, or connection.

"Anxiety and depression are not just personal struggles in this context, but natural responses to a lived experience that deny people stability and psychological safety,” says Dr. Hannah Nearney, clinical psychiatrist and UK medical director at Flow Neuroscience.

“In addition to housing plans, innovative care models are needed to address the mental health crisis caused by years of inaction. Those forced into unstable living conditions or who are overburdened by housing costs should have access to such services.

"Emerging tools such as brain stimulation techniques may help to support daily well-being in an increasingly demanding world.”