The Purchasing Potential of EU Residents in the Real Estate Market in the Context of Sustained Development

Damian Goracy, Aleksandra Maciejewska and Kamil Maciuk ()
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Damian Goracy: Department of Integrated Geodesy and Cartography, AGH University of Krakow, Al. Mickiewicza 30, 30-059 Krakow, Poland
Aleksandra Maciejewska: Department of Integrated Geodesy and Cartography, AGH University of Krakow, Al. Mickiewicza 30, 30-059 Krakow, Poland
Kamil Maciuk: Department of Integrated Geodesy and Cartography, AGH University of Krakow, Al. Mickiewicza 30, 30-059 Krakow, Poland

Sustainability, 2024, vol. 16, issue 23, 1-18

Abstract: The objective of the study was to ascertain the purchasing power potential of the average gross salary in the real estate market. The study area involved the European Union (EU) member states from 2008 to 2022. The research was based on the following data: average earnings for a full-time job, housing market transaction prices, and housing rental prices in the country. The analysis demonstrated that the average European must save for nearly six years for the purchase of their own apartment. Over the period from 2015 to 2022, the purchasing power of the monthly wage decreased in 20 of the 26 countries included in the survey. A recent study has demonstrated that 31% of the EU’s residents maintain households in rented housing. The study revealed that in the capital cities of six of the twenty countries surveyed, rent constitutes more than half of the average salary. Warsaw, the most expensive capital city, requires more than 93% of the average salary to be spent on rent.

Keywords: housing; EU; GDP; real estate; sustainable development; purchasing power (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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