Permanent Renting Becomes the New Normal Across Europe as Homeownership Grows Out of Reach

By Frances Lopez  Video by Loredana Dumitru

Published on 10/09/2026 – 12:18 GMT+2

Homeownership is becoming increasingly difficult to achieve across Europe, with renting transitioning from a temporary phase to a long-term reality for many households, according to a recent study.

The Forever Renter Global Index analyzed housing data across 39 OECD countries, identifying where permanent renting is most prevalent. European nations represent 28 of the 39 countries examined, accounting for 71.8% of the dataset.

This concentration places European housing markets under close examination, tracking key indicators such as renter shares, homeownership rates, rental costs, overcrowding, and the pace at which property prices have outstripped local wages since 2015.

Regional housing trends across Europe

Western and Northern European countries top the index with some of the highest percentages of renters in the study.

Switzerland leads globally with a rental rate of 61.2%, followed closely by Germany at 55.4%. Denmark ranks highest overall in the index with a score of 67.2 out of 100, maintaining a relatively balanced housing market with 47.5% renters and 52.2% homeowners. Luxembourg shows significantly lower rental rates at 36.0%, compared to 62.3% homeownership.

Nordic and Western European nations face mounting financial pressures alongside these structural rental patterns. Finland (38.1%) and Sweden (38.9%) both report substantial rental populations but struggle with high rent burdens and housing shortages.

In Southern Europe, Portugal maintains a strong homeownership rate of 72.1% but faces challenges with limited rental supply. The country has experienced significant wage decoupling, with property values rising 48.8% faster than earnings since 2015, resulting in a price-to-income index of 148.8.

Central and Eastern European nations show exceptionally high homeownership rates, with Slovakia at 93.5% and Romania at 92.8%, leaving rental markets representing under 5% of households.

However, regional analysis reveals that widespread property ownership often masks deeper economic challenges, with high tenant mobility replaced by rigid, multigenerational housing arrangements.

Hidden costs behind ownership rates

High homeownership percentages don’t necessarily indicate better living conditions. Central and Eastern European countries with ownership rates exceeding 90% frequently report significant overcrowding issues.

Latvia and Bulgaria both show overcrowding affecting 30% or more of their populations, with multiple generations sharing homes out of economic necessity.

In contrast, rental-focused Western and Northern European nations typically provide more spacious accommodations per household, demonstrating that renting can sometimes offer superior living conditions compared to purchasing property.

Broader global context

Across Anglosphere countries including the United States, Canada, Australia, and New Zealand, rental populations range between 30-40%. High housing costs, mortgage volatility, and substantial down payment requirements delay homeownership for younger generations.

Further south, Colombian markets show rental rates near 41%, driven by rapid urban growth creating strong demand for rental housing.

Elsewhere in the Americas, countries like Chile and Costa Rica maintain high ownership rates, reflecting cultural values similar to those found in Southern and Eastern Europe where family-supported property acquisition remains the primary means of building wealth.

In Chile specifically, an overall high homeownership rate conceals a significant affordability gap. While older generations benefit from historical government property programs, younger urban workers face barriers that confine them to long-term renting, as independent home purchases have become unattainable for many.

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