House price to income ratio in Europe 2021-2022, by country
Luxembourg, Portugal, and Austria led the house price to income index ranking in 2022, with values exceeding 134 points. Finland, Italy, Bulgaria, and Romania were on the other side of the spectrum, with less than 100 index points. The house price to income ratio is an indicator for the development of housing affordability across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head with 2015 chosen as a base year. A ratio higher than 100 means that the nominal house price growth since 2015 has outpaced the nominal disposable income growth and housing is therefore comparatively less affordable. In 2022, the OECD average stood at 124 index points.