Real estate market faces high interest rates and gender-based affordability gaps

The real estate market is facing significant challenges due to high property prices and elevated mortgage interest rates. In Romania, experts suggest that while inflation remains high, the Consumer Credit Reference Index (IRCC) might see a visible decline starting in the second quarter of 2027, potentially offering a better window for buyers to wait for lower rates.

On a broader scale, housing affordability is becoming increasingly difficult for specific demographics. In Europe and the United Kingdom, single women face greater obstacles in purchasing homes compared to men. This disparity is driven by the persistent gender pay gap—estimated at 11.1% in the EU and 12.8% in the UK for 2024—as well as higher rates of part-time employment and lower lifetime earnings due to caregiving responsibilities. Additionally, many young Europeans aged 20 to 29 are spending over 40% of their disposable income on housing, exceeding the standard 30% threshold.