Concerns about house prices (whether for renting or buying) are reaching record levels in the wealthiest countries, surpassing other issues such as health or education. A recent study by Gallup Analytics, based on responses from over 37,000 people in the 37 countries that make up the OECD club of wealthy nations, reveals that more than half of respondents are dissatisfied with housing access. In Portugal, the figure rises to 80%.
Although higher interest rates have helped reduce property prices in some European countries, housing remains more expensive than before the pandemic, as reported by the Financial Times. One explanation lies in the combination of rising borrowing costs and higher rents, coupled with a chronic shortage of housing.
Gallup’s data shows that dissatisfaction with housing costs is greatest among those under 30 and those aged 30 to 49. Around 44% of people over 50 were dissatisfied with housing in OECD countries, but the proportion rose to 55% for people under 30 and 56% for those aged 30 to 49.
Portugal, Greece, Slovenia, Canada, and Australia are among the countries where housing costs are a top concern.
Analysts partially blame the lack of new housing construction for the affordability crisis. "Basically, we haven’t built enough," says Willem Adema, a senior economist in the OECD’s social policy division, quoted by the newspaper, adding that developers tend to target wealthier families, exacerbating pressure on those with lower incomes.