“Urban Unaffordability: Uncovering the Stark Housing Divides Across Europe’s Cities”

Regional Disparities in Housing Costs: A Global Concern

The Organisation for Economic Co-operation and Development (OECD) has recently released its “Regions and Cities at a Glance 2024” report, which sheds light on the regional disparities in housing costs across various European countries. The report reveals that households in OECD regions allocate nearly one-fifth of their disposable income to housing, and the gap in housing expenses between the most and least expensive regions within the same country averages approximately ten percentage points.

In the UK, for instance, households spent an average of 16.1% of their disposable income on housing costs, while in Greater London, this figure rose to 24.4%, which is 51% higher than the UK average. In Italy, the highest proportion was recorded in the Campania region, centred around Naples, at 31.2%, while the lowest share was in Marche at 17.1%. This represents a difference of 14.1 pp, or 82% more.

In Spain, the Balearic Islands emerged as the most expensive region, with Mallorca as its largest city, where housing costs accounted for 30.4% of disposable income. Austria’s capital, Vienna, recorded an even higher proportion of 29.9% compared to Upper Austria’s 22.1%.

The data also highlights the regional disparities in housing costs within individual countries. In Switzerland, Lake Geneva emerged as the most expensive region, with households spending 36.3% of their disposable income. In Slovakia, Bratislava recorded the third-highest housing costs as a share of household disposable income, at 33.2%.

The report also points out that the share of people owning their homes outright or with a mortgage is lowest in regions where housing costs account for the highest proportion of disposable income in eight out of nine countries. In Vienna, for instance, the homeownership rate stands at just 19%, compared with 74% in Burgenland.

In conclusion, the OECD report emphasizes the need to address the regional disparities in housing costs, as they can have a significant impact on household budgets and the overall economy. It is essential for policymakers to develop strategies that promote affordable housing, reduce the cost of living, and ensure that all regions within a country have access to decent and affordable housing.

FAQ:

Q: What is the average proportion of disposable income spent on housing in OECD regions?
A: Almost one-fifth of disposable income is spent on housing in OECD regions.

Q: Which country has the largest gap in housing expenses between the most and least expensive regions?
A: The UK has the largest gap, with an average difference of 15.7 pp between the most and least expensive regions.

Q: What is the share of disposable income spent on housing in the Balearic Islands, Spain?
A: In the Balearic Islands, housing costs account for 30.4% of disposable income.

Q: Which region in Austria has the highest proportion of disposable income spent on housing?
A: Vienna records an even higher proportion of 29.9% compared to Upper Austria’s 22.1%.

Conclusion:

The OECD report highlights the significant regional disparities in housing costs within European countries. It is crucial for policymakers to address these disparities to ensure that all households have access to affordable and decent housing. By understanding the complexities of regional housing costs, policymakers can develop effective strategies to reduce the cost of living and promote economic growth.