The Most Affordable Housing Market in Europe

Denmark emerges as the most affordable country for homeownership according to BestBrokers’ analysis. A typical 100-square metre property in Denmark costs approximately 114 net monthly salaries, making it the top choice in Europe for property seekers with limited funds.

Interestingly, although Denmark leads the list in affordable housing, it ranks as the most expensive EU country for general goods and services, with prices 43% above the EU average. However, salaries in Denmark are also the seventh highest in Europe, which helps balance this cost.

Ireland and Sweden Follow Closely

Following Denmark, Ireland and Sweden are the second and third most affordable countries in Europe for buying a home, respectively. In Ireland, you would need 123 net monthly salaries, while Swedish homes cost 129 net monthly salaries. These prices equate to about 10 years of annual salaries, placing these countries as excellent options for prospective homeowners.

The Countries with the Greatest Housing Challenges in Europe

On the other end of the spectrum, the Czech Republic and Slovakia face tremendous challenges in the housing market. In Slovakia, the average 100-square metre home costs a staggering 297 times the average salary, which could accumulate over nearly 25 years of earning. Even when saving half of their net income, potential buyers in Slovakia would still face a daunting 50-year saving period.

Global Housing Affordability Insights

Expanding the analysis worldwide, South Africa tops the list for global housing affordability. An equivalent 100-square metre property in South Africa requires 71 times the average wage. The United States follows closely as the second most affordable country globally, with buyers needing 76 monthly salaries to purchase a home, which equates to roughly six years of annual salaries.

At the opposite end of the affordability spectrum are Nepal and Turkey. In Nepal, 684 salaries are necessary to buy a home, while Turkey requires 631 salaries. These figures translate to earning spans exceeding 52 years, which presents significant challenges for property ownership in these nations.

Understanding the Report’s Methodology

The BestBrokers report analyzed property prices, average net monthly income, inflation, and real mortgage interest rates across 62 countries. Unlike practical expenses, the study excluded costs such as food, accommodation, and childcare, providing a theoretical outlook on housing affordability.

Conclusion: Making Informed Housing Decisions

While Denmark offers the most affordable housing market in Europe, it’s crucial to consider factors beyond just price, such as living costs and salaries. For global prospects, South Africa stands out, but considerations like local infrastructure and cultural differences must be factored in.

Ultimately, this report provides valuable insights for homebuyers, helping them make informed decisions based on affordability. However, it’s essential to conduct thorough research and consult financial experts to ensure the information aligns with individual circumstances.

Disclaimer: This information does not constitute financial advice. Always do your own research to ensure it’s right for your specific circumstances. We are a journalistic website providing the best guides, tips, and advice from experts. If you rely on the information on this page, then you do so entirely at your own risk.

Join the Discussion

We invite you to share your thoughts and experiences regarding housing affordability in your region. Whether you’re looking to buy your first home or planning to invest in property overseas, your insights could benefit others in making informed decisions.

Don’t forget to subscribe to our newsletter for more insights straight to your inbox. Share this article with friends and family who might be interested in exploring housing options in Europe or globally.