Key facts
- Affording a €1 million home in the EU requires a €200,000 deposit and an €800,000 mortgage.
- Monthly mortgage payments are calculated at nearly €3,600.
- Buyers need an annual gross income of €130,631, assuming mortgage payments do not exceed 33% of gross income.
- In Bulgaria, a single average earner needs an income equivalent to 7.8 times the national average salary.
- Luxembourg is the most affordable, requiring 1.6 times the average salary for a single earner.
- Ten EU countries demand an income equivalent to more than five average salaries.
Affording a €1 million home across Europe requires a significantly higher income than the national average, with buyers needing an annual gross income of €130,631 based on typical mortgage scenarios. This calculation assumes a 20% deposit, a 3.5% fixed interest rate over 30 years, and that mortgage payments do not exceed 33% of gross income, resulting in a monthly payment of nearly €3,600.
The required income translates to needing the equivalent of over five average salaries in ten EU countries. Bulgaria presents the most challenging scenario, where a single average earner would need an income 7.8 times the national average. In contrast, Luxembourg is the most accessible, requiring only 1.6 times the average salary for a single individual.
When considering a couple where both partners earn the average salary, affordability improves but remains out of reach in most countries. Luxembourg is the only EU nation where two average earners would meet the assumed affordability threshold. Average gross monthly salaries across the EU vary widely, from €1,398 in Bulgaria to €6,713 in Luxembourg, highlighting the significant disparities in earning potential and housing affordability.