Title: Denmark Tops Europe for Affordability, But isn’t Cheapest Worldwide: Study
In a recent report by BestBrokers.com, Denmark has emerged as the most affordable European country for buying a home, requiring the least amount of time to save for, compared to other European nations. However, the global picture reveals that other countries may offer better value.
The study analyzed housing prices, average monthly net income, inflation, and real interest rates (mortgage rates adjusted for inflation) across 62 countries. Instead of considering daily expenses, the team focused on the theoretical time required to save for a 100-square-meter property.
European Findings
Danish buyers need the equivalent of just 114 months of net salary to purchase a 100-square-meter home, making it Europe’s most affordable country. However, Denmark also ranked as the most expensive EU country in terms of consumer prices and services (43% above the EU average, according to Eurostat), with incomes placing seventh in Europe.
Ireland and Sweden followed Denmark in affordability, requiring 123 and 129 months of net salary, respectively – approximately a decade of annual earnings. In Bulgaria, buyers need 199 months of savings to secure a home.
At the bottom of the European list were Slovakia and the Czech Republic. In Slovakia, a 100-square-meter home costs 297 times the average monthly salary – nearly a quarter-century’s worth of savings. Even setting aside half of one’s salary, it would still take half a century to save for a home.
Global Perspective
Globally, South Africa was found to be the most affordable country for buying a home relative to salaries, requiring just 71 months of average net income. The United States was not far behind, with 76 months required – roughly six years of annual earnings. Prices varied significantly across U.S. states.
Neither South Africa nor the U.S., however, made the top five most affordable countries worldwide. That list was dominated by Asian and Middle Eastern nations, with Nevis, Turks and Caicos, and Iran taking the top three spots, respectively. Nepal and Turkey occupied the bottom of the global ranking, with over 50 years of savings required to buy a home.
