Geneva, Switzerland, was the most expensive city to buy an apartment in Europe in the first quarter of 2024. The square meter price in Geneva was nearly 15,650 euros in that quarter, about 2,000 euros higher than the second city in the ranking, Zurich. Cost of rent Rents across the major cities in Europe increased significantly in 2023. One of the main factors driving high rents across European cities is the same as any other consumer-driven business. If demand outweighs supply, prices will inflate. The drive for high paid professionals to be located centrally in prime locations, mixed with the low levels of available space, high land, and construction costs, all help keep rental prices increasing. Mortgage rates The average mortgage interest rates across Europe in 2023 were all under five percent, except in Czechia, Romania, Hungary, and Poland. On an individual level, a difference of one percent would most likely mean thousands of euros in interest on the mortgage a person is paying, making timing key in house purchasing. Mortgage interest rates tend to be lower in Nordic countries due to the financial stability and reliability of its borrowers. Other factors that influence the mortgage interest rates include inflation, economic growth, monetary policies, the bond market and the overall conditions of the housing market. More stable markets also tend to have higher average prices.

According to a mid-2024 index, *********** was the most expensive country to live in Europe, with an index score of ****.******** followed in the second place with around ** points less.

A table comparing the cost of living in various European Union countries, including expenses for rent, utilities, food, and transportation in major cities

Geneva stands out as Europe's most expensive city for apartment purchases in early 2025, with prices reaching a staggering 15,720 euros per square meter. This Swiss city's real estate market dwarfs even high-cost locations like Zurich and London, highlighting the extreme disparities in housing affordability across the continent. The stark contrast between Geneva and more affordable cities like Nantes, France, where the price was 3,700 euros per square meter, underscores the complex factors influencing urban property markets in Europe. Rental market dynamics and affordability challenges While purchase prices vary widely, rental markets across Europe also show significant differences. London maintained its position as the continent's priciest city for apartment rentals in 2023, with the average monthly costs for a rental apartment amounting to 36.1 euros per square meter. This figure is double the rent in Lisbon, Portugal or Madrid, Spain, and substantially higher than in other major capitals like Paris and Berlin. The disparity in rental costs reflects broader economic trends, housing policies, and the intricate balance of supply and demand in urban centers. Economic factors influencing housing costs The European housing market is influenced by various economic factors, including inflation and energy costs. As of April 2025, the European Union's inflation rate stood at 2.4 percent, with significant variations among member states. Romania experienced the highest inflation at 4.9 percent, while France and Cyprus maintained lower rates. These economic pressures, coupled with rising energy costs, contribute to the overall cost of living and housing affordability across Europe. The volatility in electricity prices, particularly in countries like Italy where rates are projected to reach 153.83 euros per megawatt hour by February 2025, further impacts housing-related expenses for both homeowners and renters.

Percentage of the population living in a household where total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances).

This indicator is defined as the median of the distribution of the share of total housing costs (net of housing allowances) in the total disposable household income (net of housing allowances) presented by age group.

This table contains figures on the housing costs of private households in independent homes. Households living (temporarily) in a house free of charge are not included. The figures are presented for both owners and tenants and can be further divided into various characteristics of the household and the dwelling. Data available as of year: 2009 Status of the figures: final. Changes as of 4 April 2019: None, this table was stopped. When will new figures be published? This table is stopped. This table is stopped as a consequence of a revision of the income data in 2015. The housing costs are based on this income data. Therefore it is no longer possible to determine the housing costs for WoON 2018 in the same way as before. Consequently the housing costs for WoON 2012 and 2015 have also been revised. For WoON 2009 this however was not possible, since 2011 was the last year of the revision. Subsequently the housing costs for WoON 2012, 2015 and 2018 are included in the new table Housing costs of households; dwelling characteristics, region. See the link in paragraph 3.

High inflation driven by rising energy and food costs are causing a severe cost of living crisis in Europe. As of September 2022, the majority of people surveyed in seven European countries advised they had curbed their spending as a consquence, ranging from 69 percent in Italy to 54 percent in Sweden.

Table showing the country rankings based in the different metrics analysed

These data were gathered in order to determine the cost of living as well as the cost of production in selected industries in the United States and several Western European countries. The study is comprised of nine industries (cotton and woolen textiles, glass, pig iron, bar iron, steel, bituminous coal, coke, and iron ore) and contains family-level information on the household composition, income and expenditures of workers in these industries. Additional topics covered include sources of income, ages and sex of children, detailed occupation of the household head, detailed expenditures for food as well as nonfood items, and characteristics of the family's dwelling units.

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by income quintile.

Graph and download economic data for Harmonized Index of Consumer Prices: Actual Rentals for Housing for Euro Area (19 Countries) (CP0410EZ19M086NEST) from Dec 1999 to May 2025 about harmonized, rent, Euro Area, Europe, CPI, housing, price index, indexes, and price.

The cost of constructing housing in Austria in 2024 was nearly *** percent higher than in the previous year. Meanwhile, the cost of home construction in the Netherlands and Germany increased at a somewhat slower rate than in 2023. In 2023, London was one of the cities with the highest apartment construction costs in western Europe.

Graph and download economic data for Harmonized Index of Consumer Prices: Actual Rentals for Housing for European Union (27 Countries from 2020) (CP0410EU272020M086NEST) from Dec 2000 to May 2025 about EU, harmonized, rent, Europe, CPI, housing, price index, indexes, and price.

European Union - Housing cost overburden rate: Tenant, rent at reduced price or free was 10.00% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for European Union - Housing cost overburden rate: Tenant, rent at reduced price or free - last updated from the EUROSTAT on July of 2025. Historically, European Union - Housing cost overburden rate: Tenant, rent at reduced price or free reached a record high of 12.60% in December of 2012 and a record low of 8.50% in December of 2020.

Graph and download economic data for Harmonized Index of Consumer Prices: Services Related to Housing for European Union (SERVHOEUCCM086NEST) from Dec 2000 to May 2025 about EU, harmonized, Europe, services, CPI, housing, price index, indexes, and price.

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by income quintile.

Analysis of ‘Housing cost overburden rate by household type - EU-SILC survey’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://data.europa.eu/data/datasets/9h7bs2nfebyfmvnnl6qcq on 30 September 2021.

--- Dataset description provided by original source is as follows ---

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by household type.

--- Original source retains full ownership of the source dataset ---

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by household type.

European Labour Costs in Accommodation and Food Services by Country, 2023 Discover more data with ReportLinker!