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Household's housing expenditure in Austria, Germany and Italy

Author

Listed:
  • Christian Beer

    (Oesterreichische Nationalbank, Economic Analysis Division)

  • Karin Wagner

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

For many households, housing-related expenditures make up a substantial share of total consumption. This article aims to shed some light on households’ current housing expenses in Austria, Germany and Italy. To this end, we use national data from the 2014 Household Finance and Consumption Survey (HFCS) to calculate the current housing expenditure (the ratio of current housing expenses to household net income). Comparing these three countries we see that the housing expenditure is lowest in Italy, with an average (mean) of 22% (median: 17%), and highest in Germany (mean: 37%, median: 31%). The average housing expenditure in Austria is 29% (median: 26%). In all three countries, the housing expenditure decreases as income and/or wealth increases. The current housing expenditure of tenants is higher than that of homeowners. On average, homeowners’ housing expenditure amounts to 21% in Austria, 31% in Germany and 19% in Italy, whereas the average housing expenditure of tenants is 39% in Austria, 44% in Germany and 36% in Italy. In particular, homeowners without outstanding housing loans have a relatively low current housing expenditure. The difference between the median current housing expenditure of indebted owners and that of owners without debt is 10% in Austria, 17% in Germany and 19% in Italy. Differences across surveys still make international comparisons of housing expenses difficult. However, the availability of HFCS data has improved the situation considerably.

Suggested Citation

  • Christian Beer & Karin Wagner, 2017. "Household's housing expenditure in Austria, Germany and Italy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/17, pages 48-61.
    • Handle: RePEc:onb:oenbmp:y:2017:i:q4/17:b:3
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    References listed on IDEAS

    as
    1. Christian Beer & Karin Wagner, 2012. "Housing Cost Burden of Austrian Households: Results of a Recent Survey," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 78-89.
    2. Gabriella Berloffa & Paola Villa, 2010. "Differences In Equivalent Income Across Cohorts Of Households: Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(4), pages 693-714, December.
    3. Francesca Modena & Concetta Rondinelli, 2011. "Leaving home and housing prices. The experience of Italian youth emancipation," Department of Economics Working Papers 1101, Department of Economics, University of Trento, Italia.
    4. Konstantin A. Kholodilin & Andreas Mense & Claus Michelsen, 2016. "Die Mietpreisbremse wirkt bisher nicht," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 83(22), pages 491-499.
    5. Nicolas Albacete & Peter Lindner, 2013. "Household Vulnerability in Austria – A Microeconomic Analysis Based on the Household Finance and Consumption Survey," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 25, pages 57-73.
    6. Pirmin Fessler & Peter Lindner & Martin Schürz, 2019. "Eurosystem Household Finance and Consumption Survey 2017 for Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/18, pages 36-66.
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    More about this item

    Keywords

    housing costs; housing expenditures; housing finance;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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