In 2023, the average buy-vs-rent ratio in Europe was 1.4. The highest ratios were in Austria at 2.7 and Germany at 2.0, indicating that it was more than twice as expensive to buy than to rent in these markets. The lowest ratios were found in Spain and Finland, at 0.9 and 0.8 respectively, making buying more economical than renting.

This dataset provides values for PRICE TO RENT RATIO reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Since 2015, the gap between the cost of buying a home and renting has grown, with homeownership becoming increasingly less affordable. In the third quarter of 2024, the house price to rent ratio in the UK stood at 114.6. That meant that house price growth has outpaced rental growth by nearly 15 percent between 2015 and 2024. The UK's house price to rent ratio was slightly below the average Euro area ratio. House price to income ratio in the UK Another indicator for housing affordability is the house price to income ratio, which is calculated by dividing nominal house prices by the nominal disposable income per head. The ratio saw an overall increase between 2015, which was tthe base year, and 2022. After that, the index declined, but remained close to the average for the Euro area. Is it more affordable to rent or buy? There are many things to be considered when comparing buying to renting, such as the ability to qualify for a mortgage and whether prospective homebuyers have sufficient savings for a deposit. Generally, purchasing a home is more affordable than renting one. However, the average monthly savings first-time buyers can achieve have been on the decline. In East of England, where house prices have increased rapidly over the past few years, it was cheaper to rent than to buy in 2022.

United States US: Price to Rent Ratio: sa data was reported at 134.118 2015=100 in 2024. This records an increase from the previous number of 133.710 2015=100 for 2023. United States US: Price to Rent Ratio: sa data is updated yearly, averaging 99.069 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 137.672 2015=100 in 2022 and a record low of 89.669 2015=100 in 1997. United States US: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Turkey, Russia, Portugal, and Latvia were the countries with the highest house price-to-rent-ratio in the ranking in the second quarter of 2024. In all three countries, the ratio exceeded 160 index points, meaning that house price growth had outpaced rents by over 60 percent between 2015 and 2024. What does the house-price-to-rent ratio show? The house-price-to-rent-ratio measures the evolution of house prices compared to rents. It is generally calculated by dividing the median house price by the median annual rent. In this statistic, the values have been normalized with 100 equaling the 2015 ratio. Consequentially, a value under 100 means that rental rates have risen more than house prices. When all OECD countries are considered as a whole, the gap between house prices and rents was wider than in the Euro area. Measures of housing affordability The national house-price-to-rent ratio may not fully reflect the cost of housing in a particular country, as it does not capture the price variations that can exist between different regions. It also does not take into consideration the relationship between incomes and housing costs, which is measured by the house-price-to-income and household-rent-to-income ratios. Taking both these factors into account uncovers vast differences in housing affordability between different regions and different professions.

In 2024, Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio index in Europe. The four countries ranked the highest, with house price to rent indices exceeding 160 index points. The house price to rent ratio is an indicator of the affordability of owning housing over renting across European countries, with 2015 used as a base year. The higher the ratio, the more the gap between house prices and rental rates has widened since 2015 when the index amounted to 100. In terms of house price to income ratio, the top three countries were Portugal, Luxembourg, and Hungary Homeownership in Europe Homeownership varies widely across European countries. In some, such as Austria, Germany and Switzerland, homeownership is relatively low with less than two thirds of people occupying a dwelling owned by a member of the household. In other countries (Iceland, the Netherlands, Norway, and Sweden) more than half of people were owner-occupiers with a mortgage. A third group of countries with a high homeownership rate without a housing loan includes many Eastern and South European countries, among which were Serbia, Romania, North Macedonia, Italy, and Bulgaria. Dwellings as a non-financial asset Dwellings, along with structures, land, and intellectual property, are classed as non-financial assets and form an important part of household wealth. Through sale, refinancing or renting, they can serve as an additional source of income. In 2022, France, Germany, and Norway were the European countries with the highest value of dwellings per capita as a non-financial asset with values between 83,000 and 91,000 euros per capita.

Price to Rent Ratio in Spain increased to 145.43 in the third quarter of 2024 from 142.93 in the second quarter of 2024. This dataset includes a chart with historical data for Spain Price to Rent Ratio.

Price to Rent Ratio in Switzerland increased to 125.85 in the fourth quarter of 2024 from 125.19 in the third quarter of 2024. This dataset includes a chart with historical data for Switzerland Price to Rent Ratio.

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The house price to rent ratio index in the U.S. declined since the second half of 2022, indicating that house price growth slowed down compared to rental growth. That was the first decrease after a long period of a steady increase. House prices increased dramatically since the coronavirus pandemic. Meanwhile, rents have grown notably, but at a slower rate.What does the house price to rent ratio index measure?The house-price-to-rent-ratio measures the evolution of house prices compared to rents. It is calculated by dividing the median house price by the median annual rent. In this statistic, the values have been normalized with 100 equaling the 2015 ratio. Consequentially, a value under 100 means that rental rates have risen more than house prices. Compared to the OECD countries average, the gap between house prices and rents in the United States was wider. The house price to rent ratio in different countries The house price to rent ratio in the United Kingdom continued to increase in the second half of 2022, but growth softened, as the housing market cooled. On the other hand, the index in Germany fell drastically between the second quarter of 2022 and the second quarter of 2023. A similar trend was observed in France.

France FR: Price to Rent Ratio: sa data was reported at 117.733 2015=100 in 2024. This records a decrease from the previous number of 125.602 2015=100 for 2023. France FR: Price to Rent Ratio: sa data is updated yearly, averaging 75.149 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 129.085 2015=100 in 2022 and a record low of 58.056 2015=100 in 1997. France FR: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s France – Table FR.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Price to Rent Ratio in Colombia remained unchanged at 123.25 in the third quarter of 2024 from 123.25 in the second quarter of 2024. This dataset includes a chart with historical data for Colombia Price to Rent Ratio.

In the third quarter of 2024, the house price-to-rent ratio in Australia was estimated at 130.4, marking a decrease from the same quarter of the previous year. An indicator of how strong the property market is, the house price-to-rent ratio was calculated by dividing nominal house prices by rent price indices. After reaching a peak in 2017, the price-to-rent ratio decreased each quarter until the third quarter of 2019. From then on, the house price-to-rent ratio continued to increase, reaching a high in the first quarter of 2022. Since the second quarter of 2022, the house price-to-rent ratio has started to trend downward. Is Australia in a property bubble? Many industry experts believe the country is in a property bubble, indicated by the rapid increase in Australian property market prices to the point that they are no longer relative to incomes and rents, followed by a decline. The house price-to-income ratio has been on an upward trend over the past two years, hitting 122.1 in the third quarter of 2024. Rental property demand In December 2024, the rental vacancy rate, which indicates how many properties are available for rent out of all the rental stock, was relatively high in Melbourne, Canberra, and Sydney. That year, the average weekly rent prices varied across the country depending on the city, with the highest average weekly rents for houses and units in Sydney and Canberra. Hobart, on the other hand, had the most affordable rental properties across Australia's capital cities.

South Korea Standardised Price-Rent Ratio: sa data was reported at 106.162 Ratio in 2024. This records a decrease from the previous number of 106.438 Ratio for 2023. South Korea Standardised Price-Rent Ratio: sa data is updated yearly, averaging 103.556 Ratio from Dec 1986 (Median) to 2024, with 39 observations. The data reached an all-time high of 120.453 Ratio in 1990 and a record low of 75.266 Ratio in 1998. South Korea Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s South Korea – Table KR.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

Price to Rent Ratio in Ireland increased to 111.35 in the fourth quarter of 2024 from 110.19 in the third quarter of 2024. This dataset includes a chart with historical data for Ireland Price to Rent Ratio.

Rents in Germany continued to increase in all seven major cities in 2024. The average rent per square meter in Munich was approximately 19.8 euros — the highest in the country. Conversely, Düsseldorf had the most affordable rent, at approximately 13.1 euros per square meter. But how does renting compare to buying? According to the house price to rent ratio, house prices in Germany have risen faster than rents, making renting more affordable than buying. Affordability of housing in Germany In 2023, Germany was among the European countries with a relatively high house price to income ratio in Europe. The indicator compares the affordability of housing across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head, with 2015 chosen as a base year. Between 2012 and 2022, property prices in the country rose much faster than income, with the house price to income index peaking at 138 index points at the beginning of 2022. Slower house price growth in the following years has led to the index declining, as incomes catch up. Nevertheless, homebuyers in 2024 faced significantly higher mortgage interest rates, contributing to a higher final cost. How much does buying a property in Germany cost? Just as with renting, Munich was the most expensive city for newly built apartments. In 2024, the cost per square meter in Munich was almost 2,800 euros pricier than in the runner-up city, Frankfurt. Detached and semi-detached houses are usually more expensive. The price gap between Munich and the second most expensive city, Stuttgart, was nearly 4,000 euros per square meter.

Japan JP: Price to Rent Ratio: sa data was reported at 129.381 2015=100 in 2023. This records an increase from the previous number of 125.670 2015=100 for 2022. Japan JP: Price to Rent Ratio: sa data is updated yearly, averaging 125.299 2015=100 from Dec 1970 (Median) to 2023, with 54 observations. The data reached an all-time high of 185.251 2015=100 in 1991 and a record low of 91.768 2015=100 in 2009. Japan JP: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Romania Price to Rent Ratio: sa data was reported at 108.465 2015=100 in Sep 2024. This records an increase from the previous number of 107.862 2015=100 for Jun 2024. Romania Price to Rent Ratio: sa data is updated quarterly, averaging 112.052 2015=100 from Mar 2009 (Median) to Sep 2024, with 63 observations. The data reached an all-time high of 140.668 2015=100 in Dec 2009 and a record low of 97.262 2015=100 in Jun 2014. Romania Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Romania – Table RO.OECD.AHPI: House Price Index: Seasonally Adjusted: Non OECD Member: Quarterly. Nominal house prices divided by rent price indices

Price to Rent Ratio in Portugal increased to 174.47 in the third quarter of 2024 from 170.81 in the second quarter of 2024. This dataset includes a chart with historical data for Portugal Price to Rent Ratio.

Colombia CO: Standardised Price-Rent Ratio: sa data was reported at 148.170 Ratio in Sep 2024. This records an increase from the previous number of 147.748 Ratio for Jun 2024. Colombia CO: Standardised Price-Rent Ratio: sa data is updated quarterly, averaging 99.209 Ratio from Mar 1999 (Median) to Sep 2024, with 103 observations. The data reached an all-time high of 150.742 Ratio in Mar 2024 and a record low of 56.878 Ratio in Dec 2000. Colombia CO: Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Colombia – Table CO.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Quarterly. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.