Spending on housing is rising in major European countries

The ECB analyses how much the cost, including mortgage payments or rent, maintenance and utilities, has increased in recent quarters *The housing burden faced by European households* has increased in recent quarters. This is the main reading from the *Survey of Consumer Expectations* <~55~55
Consumer Expectations Survey* <https://www.ecb.europa.eu/press/economic-bulletin/focus/2024/html/ecb.ebbox202403_03~5527657e02.it.html>* published by the European Central Bank (ECB),* which has analysed the increase in the cost of housing experienced by households in the 11 main euro area countries since 2022, including rent or mortgage payments, property maintenance and basic services such as *gas, electricity and water.

According to figures from the highest monetary and financial authority in the euro area, households pay on average 765 euros per month for their housing including all items, although the amounts vary if the house is owned and already paid for, if it is mortgaged or if it is rented. Spain and Italy feature prominently in the comparison, as the two countries that tend to have the highest proportion of variable interest rate mortgages, while the number of households unable to afford all the payments is increasing.

According to the survey, in January 2024, *households were paying an average of 765 euros per month* for total housing-related costs, including utilities, housing maintenance and rental or mortgage costs. In the period between July 2022 (when the ECB started to raise interest rates) and January 2024, *the average cost of housing has risen by nearly 10.2%*, almost double the cumulative increase of the Harmonised Index of Consumer Prices (HICP), at 5.5%.

Going into detail*, the data are very heterogeneous* across households. Those who own their homes register an average of just under 500 euros per month, while in the case of families living in rented accommodation the cost is close to 900 euros. Mortgaged households are the worst off, with an average of more than 1,100 euros per month.

Overall costs *have increased by approximately 6%* for homeowners without a mortgage, but for those with a *current mortgage or rental, the increase has been 12% and 9%, respectively.

In the case of homeowners without a mortgage, for example, the increase is mainly due to a spike in housing maintenance costs, while the increase is mainly due to a rise in the cost of
For homeowners without a mortgage, for example, the increase is mainly due to the rise in housing maintenance costs, while the most prominent factor for mortgage holders has been the rise in interest rates, especially on existing variable rate mortgages and on new mortgages that have been signed. In the case of tenants, the determining factor has been the general increase in rents at a time of high demand and low supply, as well as trends in utility prices (electricity, water, gas).