Housing costs: Luxembourg above the European average, according to Eurostat
In an article titled "Where in Europe do people spend over 40% of their income on housing?", published in late October 2026, Euronews analyses Eurostat data on housing costs in Europe. The key indicator is the housing cost overburden rate: the share of people living in households that spend more than 40% of their disposable income on housing.
Luxembourg above the EU average
In 2025, the rate stood at 7.7% on average in the European Union. Luxembourg is at 8.1%, close to but slightly below Czechia (8.2%) and Estonia (8.8%); all three exceed the EU average.
The Grand Duchy nonetheless remains far from the hardest-hit countries:
- Greece: 26.4%
- Denmark: 14.7%
- Germany: 11.2%
- Sweden: 10.8%
According to the figures reported by Euronews, outside the EU, Switzerland (15.3%) and Norway (13.5%) also record high rates. By contrast, France (6.4%), Spain (7.2%) and Italy (5.0%) are below the average; Cyprus has the lowest rate (2.4%).
Rising prices across Europe
According to Eurostat, EU house prices rose by 69% on average between 2015 and the second quarter of 2026. Euronews notes that rents and energy costs have also kept rising. In total, more than 34 million people in the EU live in overburdened households. Among people at risk of poverty, the rate rises to 29.1% at EU level.
As Marietta Haffner (TU Delft), quoted by Euronews, points out, when prices, rents, energy, interest rates and inflation rise faster than incomes, the share of income spent on housing inevitably increases.
What it means in Luxembourg
- For buyers: borrowing capacity remains central. Comparing several properties and assessing the full budget (price, fees, energy) is essential.
- For tenants: the weight of rent in income deserves close attention, especially when moving.
- For owners and sellers: a market-consistent price makes transactions easier when household budgets are under pressure.
Find properties for sale and for rent in Luxembourg on the Nextimmo.lu portal.
Sources: Eurostat (housing cost overburden rate, 2025); Euronews, "Where in Europe do people spend over 40% of their income on housing?", 31/10/2026 — https://www.euronews.com/2026/10/31/where-in-europe-do-households-spend-more-than-40-of-their-income-on-housing