Report highlights housing affordability challenges across Europe

A recent report by bestbrokers.com titled “From 9 Months to 216 Years: How Long It Takes to Save for a Home Deposit Around the World” examines the financial barriers to homeownership across Europe. The study highlights that the affordability of a home depends not only on the initial down payment but also on the ongoing monthly housing cost burden.

In Cyprus, the average gross monthly income is 2,603 euros, with a mid-sized home costing approximately 305,296 euros. A 20% down payment requires 61,059 euros, which the report calculates as equivalent to 23 months of total gross income. In Greece, the average gross monthly income is 1,828 euros, while a mid-sized home costs 261,846 euros. A 20% deposit in Greece equals 52,369 euros, or 29 months of work. The research also reveals that Greece has the highest share of urban residents spending at least 40% of their income on housing at 26.9%, followed by Denmark at 25.3% and Switzerland at 18.2%.

The findings illustrate that saving for a home remains a significant challenge, with the analysis noting that the theoretical calculation assumes an entire monthly salary is saved, which is unrealistic for most households.