It depends on where you live. A recent report weighs property prices against how many months of average salary they cost.
ADVERTISEMENTThose living in Denmark need the shortest time to save up for a house in Europe, according to a recent report by BestBrokers.com. They studied house prices, average net monthly income, inflation and «real» mortgage interest rates, which are the mortgage rates adjusted with inflation, across 62 countries in the world.
«Since prices and income vary significantly from one country to the next, the team at BestBrokers decided to examine the property market through how many months of salary it takes to buy a home in various European countries,» read their report, which did not count spending on food, accommodation, childcare or anything else, making their count theoretical.
According to their findings, the average price of a 100-square metre property is the equivalent of 114 net salaries in Denmark, ranking the Northern country as the most affordable country in Europe to buy a home.
For everything else, Denmark ranked as the most expensive country in the EU in 2023 (prices for goods and services were 43% above the EU average, according to Eurostat) with the annual average earnings ranking as the seventh highest in Europe.
According to this report, Ireland and Sweden are the second and third most affordable countries in Europe, with 123 and 129 net wages respectively, being sufficient to buy a 100-sq-metre home. That is equivalent to roughly 10 years of annual salaries.
Where in Europe would it take the longest to save up for a house?
The bottom rankings in Europe go for the Czech Republic and Slovakia. In the latter, the average 100-square-metre home costs 297 times the average salary, which could be earned during almost 25 years. If someone can save half of their net wage, they will still be looking at 50 years spent vigorously saving to own a house for a family.
Where in the world are houses the most affordable?
The most affordable country in the world to buy a house relative to wages is South Africa, where people need 71 times the average wages to own a 100-square metre property.
The United States came second in this ranking. However, property prices vary a lot from one state to another. The report found that, in the US, people need 76 average monthly wages to buy a home. This is equivalent to roughly six years of annual salaries.
At the bottom of the ranking sits Nepal, with 684 salaries necessary to buy a home, closely followed by Turkey, where the number is 631, the equivalent of earnings throughout more than 52 years.
Disclaimer: This information does not constitute financial advice, always do your own research on top to ensure it’s right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page, then you do so entirely at your own risk.
