Global housing and rental market affordability

Global housing and rental markets continue to face significant affordability challenges. In Europe, high property prices and elevated mortgage interest rates persist. In Spain, average monthly mortgage payments rose to 825 euros in the second quarter of 2026, up from 748 euros the previous year, though some institutions are offering competitive mixed-rate options. In Romania, experts anticipate a potential decline in the Consumer Credit Reference Index (IRCC) by the second quarter of 2027.

Demographic disparities are widening. In the EU and UK, single women face greater homeownership obstacles due to the gender pay gap—estimated at 11.1% in the EU and 12.8% in the UK for 2024—alongside caregiving responsibilities. Furthermore, many young Europeans aged 20 to 29 are spending over 40% of their disposable income on housing.

Rental markets remain strained by the gap between costs and wages. In Turkey, rent inflation reached 77.6%, significantly outpacing a 27% net minimum wage increase for 2026. In Spain, rent costs consume up to 71% of gross salaries in regions like Madrid and Catalonia.

In the United States, mortgage rates for 30-year conventional loans are approximately 6.75%, with experts noting that rates may only drop below 6% if inflation decelerates toward the Federal Reserve’s 2% target. While typical asking rents increased 2.2% year-over-year to $1,965 in June, landlords in Sun Belt markets are increasingly using concessions, such as free months or waived fees, to attract tenants. Approximately 39.7% of rental listings offered such incentives, up from 35.2% the previous year.