Increase in rent and decline in house prices in the EU in Q1 2023.

In the first quarter of 2023, housing prices in the EU decreased by 0.7% compared to the fourth quarter of 2022, while rental prices increased by 0.9%. This marks the second consecutive quarterly decline in housing prices, following a 1.4% drop in the fourth quarter of 2022.

Compared to the first quarter of 2022, rental prices and housing costs in the EU have increased by 2.9% and 0.8% respectively. This information is based on rental and housing price data published by Eurostat today.

This article presents several conclusions from a more detailed article on housing price statistics.

Housing prices and rental rates in the EU

Housing prices and rental rates in the EU followed a similar upward trend from 2010 to the second quarter of 2011. However, after that quarter, housing prices and rental rates began to diverge.

While rental prices continued to rise throughout this period until the first quarter of 2023, housing prices fluctuated significantly. After a sharp decline between the second quarter of 2011 and the first quarter of 2013, housing prices remained relatively stable from 2013 to 2014. Following a rapid increase in early 2015, housing prices grew faster than rental prices until the second quarter of 2022.

In the third quarter of 2022, housing prices increased at the same rate as rental prices (by 0.7% compared to the second quarter of 2022).

The rise in housing prices and rental rates in the EU

Since 2010, rental prices have increased by 20%, while housing prices have risen by 46%. Housing prices have more than doubled in Estonia, Hungary, Lithuania, Latvia, Luxembourg, the Czech Republic, and Austria.

When comparing the first quarter of 2023 to 2010, housing prices in 18 EU countries have risen more than rental prices. During this period, housing prices increased in 24 EU countries and decreased in three. They more than doubled in Estonia (+200%), Hungary (+180%), Lithuania (+146%), Latvia (+132%), Luxembourg (+126%), the Czech Republic (+123%), and Austria (+122%). A decline was observed in Greece (-14%, see methodological notes), Italy (-9%), and Cyprus (-2%).

Increase in rental prices in the EU

As for rental prices, they have increased in 26 EU countries and decreased in one, with the largest growth in Estonia (+212%) and Lithuania (+165%). The only decrease was recorded in Greece (-22%).