
Rent vs net salary in Europe: The most and least affordable cities
In some European countries and cities, rent can consume nearly an entire salary. In fact, in certain places, average net salaries are not enough to cover the rent for a one-bedroom apartment in the city centre, according to Deutsche Bank Research Institute.
So, which countries and cities in Europe have the best rent-to-salary ratio? Where is rent simply unaffordable? And how do European cities compare to global ones in terms of housing costs and salaries?
The Mapping the World's Prices report compares net monthly salaries and rents for one-bedroom apartments in city centres across 69 cities worldwide. Euronews Business takes a closer look at the 28 European cities included in the report along with a few others for broader comparison.
Where are the highest salaries in Europe?
In 2025, average monthly net salaries range from just €151 in Cairo to €7,307 in Geneva, with Zurich close behind at €7,127. This makes Switzerland the highest-paying country overall.
In Europe, Istanbul has the lowest salary at €855, followed by €1,044 in Athens. People in the Northern and Western European cities are well-paid. The net salaries are above €4,000 in Luxembourg, Amsterdam, Copenhagen and Frankfurt.
Rome has the lowest average salary among the capital cities of Europe's five largest economies, at €2,046. Madrid follows slightly higher at €2,193.
Salaries are significantly higher in Berlin (€3,565), Paris (€3,630), and London (€3,637), with only minimal differences among the UK, France, and Germany.
Salaries are also high in US cities, which make up five of the top 11 globally.
Which European cities have the highest rents?
Rents for one-bedroom apartments in city centres vary widely, ranging from as low as €189 in Cairo to €3,792 ($4,143) in New York. US cities dominate the top end of the scale.
In Europe, the highest rent is in London at €2,732 (£2,365), while the lowest is in Athens at just €595.
In Zurich, Dublin, Amsterdam, and Geneva, rents also exceed €2,000, while in Istanbul and Budapest, they remain below €900.
Lisbon and Istanbul: Salary doesn't cover the rent
The percentage of salary spent on rent is a more useful measure. It shows how much disposable income is left after paying for accommodation. The rent-to-salary ratio ranges from 24% in Bangalore to 125% in Cairo.
A ratio of 100% means the entire salary goes to rent. Anything above that means nothing is left in the pocket or extra income is needed to cover rent.
In Europe, rent-to-salary ratio differs from 29% in Geneva to 116% in Lisbon. Besides the Portuguese capital, the ratio is also slightly above 100% in Istanbul (101%). This means the average net salary is not enough to pay the rent for a one-bedroom apartment in either Lisbon or Istanbul.
Single earners need to spend three-quarters of their salary on rent in London (75%), as well as in Barcelona and Madrid (both at 74%). In Milan, the ratio is also high at 71%.
More than half of the average salary is also spent on rent in several other cities: Rome (65%), Dublin (62%), Athens (57%), Warsaw (56%), Prague (54%), and Budapest (52%).
Where is the lowest rent-to-salary ratios?
Geneva (29%) is the only European city where the rent-to-salary ratio is below 30%. Following that, there are five more European cities where single earners spend less than two-fifths, or 40%, of their salary on rent. They include Luxembourg and Frankfurt (both at 34%), Zurich and Helsinki (both at 35%), and Vienna (38%).
Except for Helsinki, these examples do not mean that rent is cheap in these cities. Instead, they reflect higher salaries, which reduce the percentage of income spent on rent.
Among the capital cities of the top five European economies, Berlin has the lowest rent-to-salary ratio, with residents spending 40% of their average income on rent. Paris follows the German capital at 45%. London has the highest ratio at 75%, followed by Madrid at 74% and Rome at 65%.
This ratio in other major cities is as follows: Dublin (62%), Athens (57%), Amsterdam (49%), Stockholm (46%), Edinburgh (44%), Copenhagen (43%), and Oslo (42%).
In the global list, other cities where the salary does not cover the rent include Bogota (120%), Mexico City (118%), and São Paulo (102%).
In some cities, while the rent can just be paid, there is almost nothing left from the salary—this includes Rio de Janeiro (100%), Manila (94%), Buenos Aires (88%), and Mumbai (84%).
The rent-to-salary ratio in New York is 81%, making it the highest among US cities.
How much is left after paying the rent?
Globally, the highest disposable incomes after paying rent are found in two Swiss cities: Geneva (€5,174) and Zurich (€4,638).
The lowest is also in Europe, with Lisbon at –€202, meaning the average salary is not enough to cover the rent. In Istanbul, a single earner needs to find an extra €13 to pay the rent.
Besides the two Swiss cities, disposable income after rent is also above €2,000 in six more European cities: Luxembourg (€3,725), Frankfurt (€2,726), Copenhagen (€2,421), Amsterdam (€2,194), Oslo (€2,140) and Helsinki (€2,021).
An OECD report shows that bigger cities come with higher housing costs. Spending on housing and utilities has risen over the past 20 years in the EU.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Euronews
11 hours ago
- Euronews
Where in Europe did wealth per adult grow fastest in 2024?
The net worth of citizens varies significantly across Europe, and it changes every year. What really matters is how the changes compare when adjusted for inflation. Wealth per adult increased in a huge majority of European countries between 2023 and 2024, while a few saw declines, according to UBS's Global Wealth Report 2025. Changes measured in local currencies are shown in both average and median values — we focus on the median for deeper analysis, which isn't affected by extreme outliers, while briefly mentioning averages. Hungary recorded the highest real growth in median wealth per adult between 2023 and 2024, rising by 18.6%. The growth also reached 15% or above in several other countries, including Lithuania (16.9%), Sweden (15.3%), Italy and Latvia (both 15%). In the report, among EU member states, candidate countries, EFTA members, and the UK, only Turkey and Belgium saw a decline in median wealth per adult. Turkey stands out with a sharp 20.9% drop, while Belgium recorded a more moderate fall of 5.6%. Of Europe's five largest economies, Italy saw the highest real growth in wealth per adult at 15% whereas the UK had the lowest at 5.3%. France (10.3%), Germany (9.5%), and Spain (9%) fell in between. Switzerland, the wealthiest country per adult, saw a 7.7% increase. Sweden and other Nordic countries also recorded strong growth, each exceeding 10%. Outside Europe, South Korea (13.9%), Australia (10.7%), Canada (9.6%), and Japan (8.6%) saw significant gains in 2024. The increase in the US was more moderate at 2.3%. China and Russia recorded notable declines of 6.3% and 8.2%, respectively. Looking at average wealth change instead of median, several European countries saw declines. Both Turkey (–14.6%) and Belgium (–0.3%) saw smaller average declines in comparison to their median values. Luxembourg (–1.3%), Estonia (–2.3%), France (–1.8%), and the UK (–3.6%) also recorded decreases. Drivers behind changes in Turkey's asset prices So, what explains Turkey's sharpest decline in wealth per adult between 2023 and 2024? Prof. Hakan Kara of Bilkent University in Ankara, and former chief economist at the Central Bank of Turkey, suggests that to understand this trend, one must look back over the past five years. He noted that between 2020 and 2023, an environment of abundant credit and extremely low real interest rates led to a significant surge in asset prices. 'This period witnessed a major transfer of wealth from savers to borrowers, and from fixed-income households to corporations. The Foreign Exchange Protected Deposit scheme (KKM) further reinforced this dynamic. As wealth inequality rose rapidly, only a narrow segment of the population—those with access to credit or pre-existing savings—was able to benefit from the asset price boom,' he explained. By mid-2023, with the normalisation of interest rates, a real correction in asset prices began. As housing, land, stock, and bond prices declined in real terms, a corresponding erosion of real wealth was observed. 'We can see the 2023-24 period as a correction of the 2020-22 period', he added. Five-year changes: Austria records the largest decline 'Real' changes in wealth per adult from the beginning of 2020 to the end of 2024 reveal longer-term trends. Austria emerges as a major outlier, with median wealth per adult falling by 18%. The Netherlands (–2.3%) and Estonia (–0.1%) followed. In Europe, Cyprus recorded the highest increase at 43.9%, followed by Denmark, Latvia, and Lithuania — each with gains of over 30%. Real median wealth per adult growth also exceeded 25% in Malta, Slovenia, Norway, Bulgaria, and Portugal. Germany saw the highest rise among Europe's top five economies, with a 20.1% increase. Italy recorded the lowest at 4.7%. Spain (17.8%) and the UK (16.3%) posted strong growth, while France saw a more moderate increase of 10.5%. Major non-European countries reported significant growth, with the US leading at 45.8%, followed by Russia (35.1%) and South Korea (31%). In average terms, the picture changes completely. Several countries saw declines in wealth per adult. Cyprus, which recorded the highest growth in median wealth, emerged as the outlier with a –24.9% drop in average wealth per adult. Other significant drops occurred in Austria (–13.1%), Malta (–11.3%), Estonia (–10.6%), Italy (–9.4%), and Ireland (–7.8%). Switzerland, Luxembourg, the Netherlands, Belgium, Romania, and Slovakia also recorded comparatively moderate declines. The impact of high inflation 'The contraction in real average wealth per adult in this period was mainly due to high inflation in the concerned countries, particularly so in Austria, Belgium and the Netherlands, but also in Italy, albeit to a slightly lesser extent', the report noted. The growth in the size of the adult population was a further contributing factor, primarily in the Netherlands and, to a smaller degree, in Switzerland according to the report. In Switzerland's case, currency depreciation was the primary factor, followed by inflation. What do divergences suggest? Divergences are striking in several countries, where changes in average and median wealth per adult differ significantly. For example, in Switzerland, slightly negative growth in average wealth per adult compares with a 14% rise in median wealth per adult, while in Italy the figures are respectively –10% and almost +5%. 'These divergences suggest slower wealth growth at the higher end of the spectrum than in the middle section of the wealth distribution,' the report pointed out. The same dynamic was at work in Germany and the UK, too.

LeMonde
16 hours ago
- LeMonde
'European citizens under US sanctions are being erased economically and socially within the EU'
In recent months, the US has added several judges and International Criminal Court prosecutors to the list of "Specially Designated Nationals" maintained by the Office of Foreign Assets Control (OFAC), which is responsible for enforcing US international financial sanctions. On July 9, Francesca Albanese, the United Nations special rapporteur on the occupied Palestinian territories, joined them on the list. The individuals listed have had their assets frozen in the US, and American nationals and companies are prohibited from doing business with them. Neither criminals nor fugitives, but rather respected professionals in international law who have been sanctioned – not for wrongdoing, but for carrying out their duties, in ways that are clearly displeasing to Washington. This development is not just a diplomatic affront; it is an alarming signal. A small but growing number of European citizens – who are innocent under all legal standards of the European Union (EU) – also appear on the OFAC list. They are not under investigation in their own countries. No court has convicted them. And yet, they and their families have been treated as pariahs. Not only in the US, but – more seriously still – in their own countries, within the EU itself. These individuals have become Europe's living dead: legally alive, but erased economically and socially. They are victims of a kind of "civil death" penalty. Their inclusion on the OFAC list, often for opaque or arbitrary reasons, triggers a cascade of consequences far beyond American borders. It is in Europe that banks close their accounts; that IT companies cut off access to email, software, and cloud services; that delivery companies refuse to drop packages at their door. Families have been ruined. Careers destroyed. However, it is perhaps understandable that people subject to OFAC sanctions should be restricted in their travel to, or trade with, the US. After all, it is the prerogative of the US government to exercise sovereignty on its own territory. It is unacceptable, however, that European citizens – some of them above any suspicion in the eyes of their own authorities – lose everything at home due to excessive caution on the part of European companies. These businesses blindly enforce US sanctions. Two trends explain the phenomenon.

LeMonde
19 hours ago
- LeMonde
Cognac drags down LVMH's spirits division
The engine driving cognac sales has yet to regain full speed. LVMH acknowledged it in its half-year results, published Thursday, July 24. Moët Hennessy, its wine and spirits division – of which British company Diageo owns 34% – reported an 8% drop in revenue to €2.58 billion. This marks a further slide after an 11% decline over 2024, to €5.9 billion. The blow was even harsher for recurring operating profit, which fell by one-third to €524 million in the first six months of 2025. The group, led by Bernard Arnault, explained the disappointing performance due to "weak demand for cognac" and "the impact on customers of trade tensions weighing on key markets in the US and China." The US and China accounted for 80% of sales of the prized Charente region spirit, whose leading brand is Hennessy. Across the Atlantic, LVMH – and major competitors such as Pernod Ricard, owner of Martell, or Rémy Cointreau, known for its Rémy Martin brand – were caught off guard. After the post-Covid-19 boom, the wave of inflation disrupted consumer behavior. They suddenly became more cautious about spending just as spirits groups continued to raise their prices. The drop-off was abrupt. Chinese customers also adopted a wait-and-see attitude, troubled by their country's economic slowdown. After trade battles On top of this new consumer mindset, fierce trade battles compounded the problem. Since early 2024, cognac has been ensnared in a conflict between Europe and China. The sector breathed a sigh of relief in early July. Although Beijing decided to impose 32% tariffs on European wine-based spirits, most companies that agreed to set a minimum price – in effect, a price increase ranging from 12% to 16% – were granted exemptions. LVMH benefited from this agreement. Likewise, Rémy Cointreau revised down the impact of Chinese tariffs on Friday, July 25, from €40 million to €10 million. Conversely, the impact in the US would rise from €25 million to €35 million.