Rents rise and house prices fall in the European Union in April 2023

In the first quarter of 2023, house prices in the European Union fell by 0.7% compared to the fourth quarter of 2022, while rents increased by 0.9%. This is the second consecutive quarterly decline in house prices after a 1.4% decrease in the fourth quarter of 2022. Compared to the first quarter of 2022, rents and house prices in the European Union increased by 2.9% and 0.8% respectively. This information is based on data on rents and house prices published by Eurostat today.

This material presents a few findings from a more detailed article on house price statistics. House prices and rents in the European Union followed a similar rising trend from 2010 until the second quarter of 2011. However, after that quarter, house prices and rents developed differently. While rents rose steadily throughout this period until the first quarter of 2023, house prices fluctuated significantly. After a sharp decline between the second quarter of 2011 and the first quarter of 2013, housing prices remained roughly stable from 2013 through 2014. After rising rapidly in early 2015, home prices increased faster than rents until the second quarter of 2022.

In the third quarter of 2022, house prices increased at the same rate as rents (both +0.7 percent compared to the second quarter of 2022). Beginning in the fourth quarter of 2022, home prices began to fall while rents continued to increase. From 2010 through the first quarter of 2023, rents increased 20% and home prices increased 46%. House prices more than doubled in Estonia, Hungary, Lithuania, Latvia, Luxembourg, the Czech Republic and Austria. When comparing the first quarter of 2023 with 2010, house prices increased more than rents in 18 European Union countries. During this period, house prices rose in 24 European Union countries and fell in three. They more than doubled in Estonia (+200%), Hungary (+180%),

In terms of rents, prices increased in 26 European Union countries and decreased in one, with the largest increases in Estonia (+212%) and Lithuania (+165%). The only decrease was recorded in Greece (-22%).