SRC: Housing cost overburden rate by tenure status (Eurostat, 2008-2019)

  • Housing cost overburden rate by tenure status - EU-SILC survey

  • Summary:

    • "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 accommodation tenure status."

  • Includes data about owners with a mortgage, owners without a mortgage, tenants at market prices and tenants at reduced prices.

  • Note that many economists argue that using more than 30% of the total disposable household income should be already be considered as housing cost overburden.

  • And note that there are economists who argue that establishing such a blanket threshold to define housing cost overburden, be it 30 or 40%, is not useful because it depends on the amount of total disposable household income and the cost of living in different places. Meaning that a household with a 800,000 euros of income per year can probably afford a 40% housing cost in an expensive city, while a household with a 16,000 euros of income per year probably can't afford a 30% housing cost in an inexpensive city.

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