Highest housing costs throughout the European Union shows Hellas. According to her Eurostat published yesterday, in 2021 the cost of housing in Greece was 34.2% of net income citizens against 18.9% on average in Europe. In second place is Denmark, where housing costs account for 26.3% of disposable income, followed by the Netherlands at 23.9%.

Further analysis of the relevant data reveals that the economically weakest households are even more burdened with housing costs. In Greece, in particular, the cost reaches 60% of income in households whose total disposable income is below 60% of the national average (which are also considered below the poverty line). Conversely, the cost of housing reaches 28.3% for households with an income of more than 60% of the national average. The corresponding European averages are 37.7% for households below 60% of the European average and 15.2% for households above 60% of the average.

This is the highest percentage in the EU, where the average is 18.9%.

In a related analysis in its weekly Economic Development Bulletin, Alfa Bank said that rising energy prices, rents, and interest rates are having an increasing impact on home prices. However, it is emphasized that “although the cost of housing in Greece is high, as a percentage of disposable income, it has fallen significantly compared to the previous decade of economic crisis.” For example, in 2014 it was 42.5% compared to 34.2% in 2021.

In addition, the percentage of the population living in households for which housing costs exceed 40% of their disposable income (overload factor) was higher in 2021 for those who rent (74.6%), compared with owners who pay mortgage or other loan (18.5%), but also for urban residents (32.4%) compared to rural residents (22%).

Of course, the financial hardship for many households also translates into corresponding delays in paying off debts. According to Eurostat, in 2021, 36.4% of the Greek population showed a delay in servicing their debts, either on rent, on DEKO accounts, or on home loan payments. In second place in the EU. with 20.4%, followed by Bulgaria and further countries such as Cyprus with 17.3%, Croatia with 16.6% and Ireland with 13.6%. Considering that in 2022 the factor of the energy crisis was added, which raised the cost of electricity and heat, a significant increase in the above percentages is expected in the next Eurostat review.