Overview of the Investigation
Investigate Europe’s “Untaxed” investigation, led by journalist Attila Kálmán, examines how generous tax advantages for real‑estate investors across EU member states have fueled a dramatic rise in housing prices. The report highlights the disparity between owners and renters, showing that tax‑driven investor demand is a core factor in the continent’s housing affordability crisis.
House‑Price Surge Across Europe
Between 2015 and 2021, nominal house prices in the EU‑27 rose by almost 40 percent, with many countries seeing prices double or more. Estonia’s prices increased nearly 2.5‑fold in a decade, while Hungary, Luxembourg, Latvia and Austria have at least doubled. In most nations, price growth outpaced inflation and wage increases, making home purchase increasingly unaffordable.
Modest Rent Growth Compared with Prices
Rents grew by only about 8 percentage points over the same period, roughly matching cumulative inflation. This slower rise reflects the inelastic nature of the rental market, yet the gap between rent and house‑price growth suggests further rent increases are likely as housing costs continue to climb.
Years of Average Wages Needed for a Home
Data from the Hungarian National Bank shows the average wage required to buy a 75 m² apartment in capital cities varies widely. In Prague, Bratislava and Paris, more than 20 years of wages are needed; in Oslo and Rome about 10 years; in Dublin, Brussels and Nicosia under 10 years. In Budapest, the required time rose from 6.3 years (2012) for a second‑hand flat to 18 years for a new dwelling by the end of 2022.
Ownership vs. Renting Patterns
Former socialist countries have home‑ownership rates around 90 percent, while western and northern nations show lower ownership and higher renting. German‑speaking countries and Denmark exhibit near‑equal rates of owning and renting, highlighting regional cultural and policy differences.
Rent‑Burden and Over‑burdened Households
In 2021, 50 percent of market renters in the EU‑27 spent at least 40 percent of their income on housing, compared with 11.5 percent of owners. Greece recorded the worst situation, with 96.6 percent of renters over‑burdened; the Netherlands exceeded 80 percent. Among income groups, a third of the lowest 20 percent of earners are over‑burdened, versus only 0.6 percent of the richest 20 percent.
Rental Affordability in Capital Cities
Eurostat and SIRP data show that one‑bedroom rentals in many capitals exceed 40 percent of median wages, making them unaffordable for average earners. In Brussels and Nicosia, the ratio reaches 41 percent; in Athens, Lisbon, Bucharest and Zagreb, rent can surpass an entire annual salary. Even non‑central rentals remain costly, with Warsaw and Lisbon requiring 63 percent of average salaries, while Vienna stays below 25 percent.
Tax Policies as a Driver of the Crisis
The investigation links generous tax reliefs for property investors to inflated house prices, noting that tax benefits often lack clear economic purpose. Tax‑justice experts argue that these exemptions enable investors to treat housing primarily as a financial asset, exacerbating supply‑demand imbalances and pushing up costs for households.
Implications for Sustainable Housing
The findings underscore that tax‑induced price inflation undermines efforts toward sustainable, inclusive housing. High purchase and rental costs limit access to adequate dwellings, potentially increasing commuting distances, energy consumption, and social inequality—key concerns for a pan‑European audience focused on sustainability.