Cyprus records one of the lowest housing cost burden rates in Europe, though saving a deposit for a home still requires close to two years of a worker’s gross income, according to a report by bestbrokers.com titled “From 9 Months to 216 Years: How Long It Takes to Save for a Home Deposit Around the World.”
In Cyprus, the average gross monthly income stands at 2,603 euros, while the average price of a mid-sized home is around 305,296 euros, the report found. A 20% deposit therefore amounts to around 61,059 euros, which would take 23 months of work to save, assuming a worker could set aside their entire gross monthly income, something the report notes is unrealistic in practice.
In Greece, by comparison, the average gross monthly income is 1,828 euros and the average price of a mid-sized home is around 261,846 euros. A 20% deposit there comes to 52,369 euros, equivalent to 29 months of work, according to the report.
The report also measured the share of urban residents who spend at least 40% of their income on housing. Greece recorded the highest rate among the countries surveyed, at 26.9%, followed by Denmark at 25.3%, Switzerland at 18.2%, Norway at 17.5% and the UK at 16.2%. Rates were markedly lower in the Netherlands, at 8.8%, France, at 9%, and Luxembourg, at 11.6%. Cyprus and Croatia recorded the lowest rates of all, at 2.6%.
The report attributed the gap partly to income levels: in countries where wages are higher, an expensive home or high rent can represent a smaller share of disposable income. Lower home prices, combined with higher rates of home ownership, also play a role, meaning fewer households are directly exposed to rental prices or changes in mortgage rates. Cyprus, the report said, is a clear example of this pattern.
A low share of households exceeding the 40% threshold does not mean buying a home is easy for everyone, the report cautioned, particularly for those currently renting or trying to buy their first property. The housing crisis, the report said, is reflected not only in property prices, but in the relationship between housing costs and household income.
Behind the average figures, however, the report said, lie different realities: owning a home already is not the same as trying to secure housing today in a market with high prices and rents.
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