European Cities Ranked by Rent-to-Salary Ratios: A Financial Overview

European cities are facing a growing challenge regarding housing affordability, as recent data reveals stark disparities in rent-to-salary ratios. According to a report by Eurostat, housing costs are consuming an increasingly large portion of household budgets across the continent. The situation is particularly dire in city centres, where average rents can absorb nearly an entire salary for low-income earners.

The Mapping the World’s Prices report, which includes 69 cities worldwide, provides a comprehensive look at net monthly salaries and rents for one-bedroom apartments in European city centres. This analysis highlights the best and worst rent-to-salary ratios across the continent, revealing that in some cases, average net salaries are insufficient to cover rent.

Salary Disparities in European Cities

A closer examination of salary levels shows that averages vary significantly across Europe. In March 2025, net monthly salaries range from a mere €151 in Cairo to €7,307 in Geneva, making Switzerland the highest-paying country overall. In stark contrast, Istanbul ranks lowest in Europe with a monthly salary of €855, followed by Athens at €1,044.

Cities in Northern and Western Europe tend to offer higher salaries, with figures exceeding €4,000 in Luxembourg, Amsterdam, Copenhagen, and Frankfurt. Among the capitals of Europe’s five largest economies, Rome has the lowest average salary at €2,046, while Madrid slightly edges higher at €2,193. Berlin, Paris, and London feature higher averages, with salaries around €3,600.

Rising Rent Costs in Major Cities

The cost of renting one-bedroom apartments in European city centres presents a wide array of challenges. Rents can be as low as €189 in Cairo but soar to €2,732 (£2,365) in London. Other cities such as Zurich, Dublin, Amsterdam, and Geneva report rents that exceed €2,000, while Istanbul and Budapest remain below €900.

The rent-to-salary ratio serves as a critical measure of affordability, indicating the percentage of income that goes towards housing. For instance, Geneva boasts a favourable ratio of 29%, while Lisbon presents a concerning 116%. This alarming figure suggests that the average net salary in Lisbon is inadequate to cover rent expenses. Similarly, single earners in London allocate 75% of their income to rent, a figure echoed in Barcelona and Madrid at 74%.

In cities like Milan and Dublin, more than half of the average salary is consumed by rent, reflecting broader financial pressures. Other cities, such as Rome and Budapest, also exhibit high ratios, with residents spending 65% and 52% of their incomes, respectively.

Where Rent is More Manageable

Conversely, Geneva stands out as the only major European city where the rent-to-salary ratio falls below 30%. Other cities with more manageable ratios include Luxembourg and Frankfurt at 34%, and Zurich and Helsinki at 35%. These ratios illustrate that while housing costs remain high, elevated salaries help to alleviate the financial burden.

In the context of the largest European economies, Berlin has the lowest rent-to-salary ratio at 40%, followed closely by Paris at 45%. In comparison, London leads the pack with the highest ratio at 75%, followed by Madrid at 74% and Rome at 65%.

Globally, other cities facing severe housing affordability issues include Bogota (120%), Mexico City (118%), and São Paulo (102%). In these areas, residents often find their salaries barely cover rent, leaving little to no disposable income.

The OECD reports indicate that housing and utility costs have increased significantly over the past two decades within the EU, highlighting a persistent trend that threatens to impact the quality of life for many residents.

With the cost of living on the rise, the urgency for affordable housing solutions becomes increasingly critical, as many individuals navigate the challenges of balancing their income with housing expenses in an evolving economic landscape.