Only 2% of Europe’s lowest-income tenants are likely to become homeowners

For Europe’s poorest renters, the move from tenant to homeowner is becoming almost impossible. A recent report from the European department of the International Monetary Fund finds that only 2% of the most vulnerable households now have a chance of making that transition.

The report examines how likely renters are to buy a home over time. Among households with enough financial resilience to withstand a shock like the last major recession, the proportion reached only 5% in 2022-2024, although that was a slight increase from 2015-2017. For households unable to absorb another economic shock, the chance has fallen by more than half since 2006-2007.

Savings provide little relief. Even renters with a financial cushion, either from their own savings or family support, face a distant goal. For lower-income households, the difficulty of raising a down payment adds another barrier. “Homeownership appears to have become practically unattainable for economically vulnerable households,” the report’s authors write. They warn that the divide is structurally separating these families from one of the main ways to build wealth.

The IMF used EU-SILC statistics, collected in Spain by the National Statistics Institute through its Living Conditions Survey. The decline in the path to ownership has been sharper in urban areas than rural ones, although it is widespread. The report says increased demand for space during the pandemic and the wider availability of remote work may have encouraged more purchases outside cities.

Housing costs are also consuming more income. Among the lowest-income tenants in Europe’s largest cities, housing absorbed 53% of disposable income in 2022-2024, the highest level in the periods examined. Among higher-income EU tenants, the ratio ranged from 10% to 18%.

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Homeownership appears to have become practically unattainable for economically vulnerable households.