Can you afford to live here? Europe’s cities ranked by rent-to-salary ratio

This article, published by Euronews and authored by Servet Yanatma, discusses the critical issue of housing affordability in European cities. It highlights how rent prices are consuming a larger portion of household budgets, particularly affecting low-income earners and those on minimum wage. The content draws on data from Eurostat and Deutsche Bank Research Institute to analyze rent-to-salary ratios in various European cities.

As rent prices soar, many European citizens find that their salaries are insufficient to cover even basic housing costs. In some cities, the average net salary does not suffice to rent a one-bedroom apartment in the city center. The Mapping the World’s Prices report compares net monthly salaries and city rents across 69 cities globally, revealing stark contrasts in affordability.

In 2025, average monthly net salaries in Europe vary significantly. For instance, Geneva boasts the highest average at €7,307, while Istanbul has the lowest at €855. Northern and Western European cities tend to offer higher salaries, with net incomes exceeding €4,000 in places like Luxembourg, Amsterdam, Copenhagen, and Frankfurt. Conversely, Rome and Madrid have lower average salaries among the capital cities of Europe's five largest economies, at €2,046 and €2,193, respectively.

Rental costs for one-bedroom apartments in city centers show considerable variation. London leads the pack with the highest rent at €2,732, while Athens offers the lowest at €595. Other cities like Zurich, Dublin, Amsterdam, and Geneva also see rents surpassing €2,000, whereas Istanbul and Budapest maintain lower figures below €900. The stark reality is that many residents in high-rent cities struggle to make ends meet.

The rent-to-salary ratio serves as a vital measure of affordability. In Europe, this ratio ranges dramatically, with Geneva at a manageable 29% and Lisbon at a concerning 116%. This indicates that residents in Lisbon and Istanbul spend more than their entire salary on rent, leaving them with insufficient disposable income. In London, single earners allocate 75% of their salary to rent, with similar figures observed in Barcelona and Madrid.

Globally, cities like Bogota, Mexico City, and São Paulo also exhibit high rent-to-salary ratios, where salaries barely cover housing costs. This trend is not unique to Europe, as many urban centers worldwide are grappling with housing affordability challenges.

After covering rent, disposable income varies widely. Geneva and Zurich report the highest disposable incomes at €5,174 and €4,638, respectively, while Lisbon's residents face a negative disposable income of –€202. In Istanbul, individuals require an additional €13 to afford their rent. Other cities, including Luxembourg and Frankfurt, also show a healthy disposable income exceeding €2,000 after rent.

The article underscores the pressing issue of housing affordability in European cities, with significant discrepancies in rent-to-salary ratios. As urbanization continues to rise, understanding these dynamics is crucial for advocating sustainable housing solutions that can support diverse populations across Europe.