Renters in Romania, among the most affected by housing costs in Europe, shows the study of a large bank

Almost half of Romanian renters say that it is difficult or “very difficult” for them to meet the monthly payments, according to the latest ING Consumer Research survey, published on Thursday.

Varying degrees of difficulty with housing costs in Europe

More than a quarter of those paying mortgages or rent in six European countries report difficulties in making these monthly payments, according to the latest ING Consumer Research survey. The exact figures vary depending on the countries studied – Belgium, Germany, the Netherlands, Poland, Spain and Romania. But a common theme is that in all countries a higher percentage of renters than owners are struggling.

The extent to which tenant problems affect overall results depends on the role that the rental market plays in each country's housing market. Housing cost difficulties range from 9% of Dutch homeowners to 58% of Polish renters

“How easy or difficult do you find it to pay the mortgage/rent each month?”, percentage of those who answered “difficult” or “very difficult”:

The graph above also reflects variations in home ownership rates. In Germany, with the lowest home ownership rate in the EU at just 47%, more people pay rent than a mortgage, which is why the orange column is much closer to the brown than the light blue. None of the other five countries has a home ownership rate below 69%.

Housing affordability is widely considered a problem

With over a quarter of our survey respondents reporting problems paying their rent or mortgage, it's no surprise that housing affordability is widely seen as a problem. In all six countries, significantly more people disagree or strongly disagree with the statement that “housing […] are accessible to most people in my country' than agree or strongly agree.

But the share of respondents who have trouble paying their rent or mortgage does not translate directly into how the problem is perceived in general.

Although a large proportion of rent and mortgage payers in Romania, for example, have difficulty managing their housing costs, several Romanians say that housing is still affordable.

On average, 59% do not think housing is affordable.

“To what extent do you agree or disagree with the statement: Housing (either rented or bought) is affordable for most people in my country?”

Conversely, relatively few people in the Netherlands have difficulty paying their rent or mortgage. However, the figures for those who agree with the accessibility statement are the lowest of the six countries, and those who disagree are the second highest.

The results of the ING survey suggest two possible explanations for this discrepancy. On the one hand, a high home equity rate doesn't necessarily mean that many people are still paying off their mortgages.

In fact, even though Romania has the highest rate of mortgage ownership in the EU, at 94%, the absolute number of mortgage payers in the survey is the lowest among the six countries. This suggests that many of these owners have either inherited their property or have already paid it off.

Therefore, the number of mortgage and rent payers is also the lowest among the countries studied, possibly explaining the smaller size of this problem compared to other countries, the ING survey shows

First-time buyers face challenges

On the other hand, in countries with property-dominated housing markets, housing affordability could be interpreted by many as the ability of first-time buyers to access the housing market.

When prices rise, first-time home buyers will be more vulnerable than those who are simply switching homes, as they cannot take advantage of the income that a home owner would generate.

“Do you think that…”, the percentage of those who answered “yes”:

The Netherlands has the highest share of respondents who expect first-time homebuyers to need more support from parents or family than five years ago, and also the highest share of those who believe that value for money has fallen for first-time homebuyers. The Netherlands also has by far the fewest respondents who believe that one's first property can still be a “lifetime home”.