This is the steepest decline, meaning a stronger increase in housing affordability, versus a 6.8% positive increase in housing prices above the rise in per capita household incomes.
Romania was followed by Finland (-25.2%) and Bulgaria (-16.2%). But while Romania’s and Bulgaria’s better housing affordability was driven by the income factor, the improvement in Finland was, on the contrary, an effect of lower prices.
At the opposite end, Portugal recorded the largest increase in the house price-to-income ratio (+60.8%), followed by the Netherlands (+34.3%), Hungary (+26.5%), Czechia (+25.8%) and Spain (+24.5%).
Notably, this metric does not compare housing affordability across countries. The house price-to-income ratio compares changes in house prices with changes in per capita household income, relative to a base year. It increases when house prices rise faster (or fall more slowly) than income, decreases when they rise more slowly, and remains unchanged when both change at the same rate.
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