European housing crisis: Disposable income varies widely by city

A report titled ‘Mapping the World’s Prices 2026’ by the Deutsche Bank Research Institute highlights a growing housing crisis across Europe, characterized by property shortages and rising rents. The study examines the disposable income remaining for a dual-income couple after paying rent for a three-bedroom apartment in city centers.

Among 28 European cities studied, Zurich reported the highest remaining disposable income at 9,140 euros, despite having the highest rents at 5,502 euros, due to high net salaries. Geneva follows with 8,783 euros remaining, and Luxembourg ranks third with 5,890 euros.

In contrast, Lisbon shows the lowest remaining income at 253 euros. The report also notes that while cities like London, Dublin, and Amsterdam have high rents, Birmingham offers more remaining disposable income (5,238 euros) due to significantly lower rental costs compared to the UK capital.