Europe’s housing squeeze: How much salary is left after rent?

Zurich and Geneva top Europe’s disposable-income rankings, while Lisbon and Milan leave working couples with little room to cover everyday expenses. The figures expose a growing gap between earnings and housing affordability.

For many European households, earning a salary is no longer enough to guarantee financial comfort in a major city. Rising rents, expensive housing and uneven wage levels mean that even two working adults can face tight budgets after paying for accommodation.

A comparison published by Euronews Business on 16 October, based on Deutsche Bank Research Institute’s Mapping the World’s Prices 2026 report, highlights the gap between income and housing costs across 28 European cities. The comparison estimates how much money remains when two people earning the average local net salary share the rent for a three-bedroom apartment in the city centre.

The results vary sharply. A working couple in Zurich has an estimated €9,140 left each month after rent, compared with just €253 in Lisbon. These figures represent disposable income after rent, not after all living expenses: food, utilities, transport, healthcare and other costs still need to be paid.

Zurich ranks first in the European comparison, with an estimated combined net salary of €7,321 per person-equivalent measure used in the report and monthly rent of €5,502 for a three-bedroom city-centre apartment. The resulting amount left for a two-person household is €9,140 under the report’s calculation.

Geneva follows with €8,783 remaining after rent. Luxembourg ranks third at €5,890, while Birmingham and Copenhagen record approximately €5,238 and €5,233, respectively.

The rankings demonstrate why rent alone does not determine affordability. Zurich has the highest rent among the 28 cities, yet its comparatively high earnings leave households with more money after housing costs than elsewhere in the comparison.

This does not mean that Switzerland is inexpensive. Rather, the figures show how higher wages can offset high rents when disposable income is measured in absolute monetary terms. Differences in taxation, household expenses and individual circumstances also affect how comfortably residents can live on the remaining amount.

Southern European cities occupy the bottom of the ranking. Lisbon records just €253 remaining after rent, followed by Istanbul at €353 and Milan at €697.

In Lisbon, the estimated monthly net salary is €1,408, while rent for a three-bedroom city-centre apartment reaches €2,561. The rent therefore exceeds one net salary by approximately 82%. In Milan, the corresponding figures are €1,940 in net salary and €3,184 in rent.

The pressure extends beyond these cities. A couple in Athens has an estimated €1,148 remaining after rent, while the figures for Rome, Barcelona and Madrid are €1,265, €1,832 and €1,905, respectively.

These differences suggest that households in several cities face a narrow financial margin even when both adults work. A high share of income absorbed by rent leaves less room to manage unexpected expenses, save for a deposit or build longer-term financial security.

However, the comparison should not be interpreted as a complete ranking of living standards. It uses a specific housing type and city-centre location, and does not account for every household expense or differences in public services.

The United Kingdom also illustrates how housing costs can outweigh differences in earnings. A couple in Birmingham has an estimated €5,238 left after rent, compared with €3,148 in London.

Although London offers higher salaries, the estimated rent for a three-bedroom city-centre apartment is €4,362, against €1,949 in Birmingham. The resulting difference leaves a couple in Birmingham with approximately €2,090 more each month after rent.

Dublin faces a different problem. Its estimated net salary is €3,455, but rent reaches €3,873, leaving a household with €3,038 after rent under the report’s calculation. The rent alone exceeds one net salary.

Paris and Berlin provide another comparison. Paris has higher estimated net salaries, but higher rent means couples in Berlin retain €3,554 after housing costs, compared with €3,336 in Paris.

The pattern underscores the importance of considering housing costs alongside wages when evaluating the financial attractiveness of cities for workers and families.

Some Central and Eastern European cities perform better than southern European capitals in the comparison. Prague records €2,054 remaining after rent, Warsaw €1,985 and Budapest €1,548.

All three exceed the estimated amounts for Rome and Athens. Yet the report also identifies Prague and Budapest among the cities where one net salary is almost equivalent to the rent for a three-bedroom city-centre apartment.

The figures therefore point to relative differences between cities, rather than suggesting that housing affordability is no longer a problem in Central and Eastern Europe.

The study covers 69 cities worldwide. Zurich and Geneva rank first and second globally in the amount remaining after rent, with San Francisco third at €7,992. Seven of the global top 10 cities are in Europe, according to the Euronews analysis.

At the other end, Manila and Bangkok record negative amounts after deducting rent from the combined net salaries used in the comparison: minus €882 and minus €759, respectively. Such results indicate that the modelled rent exceeds the combined income measure, not that every household in those cities experiences the same financial outcome.

The contrast shows that housing affordability is not confined to Europe, although the balance between local wages and rent differs considerably across regions.

The comparison arrives amid wider concerns about housing access and the financial position of younger generations. Euronews notes that younger Europeans have lower homeownership rates than earlier generations, while housing prices and rents have continued to rise in many countries.

For policymakers, the challenge is not simply to raise wages or increase the number of homes in isolation. Housing supply, the location of employment, transport links, rental-market conditions and the relationship between earnings and housing costs all influence whether workers can afford to live near economic opportunities.

The figures also have implications for employers and city governments. When housing consumes a large share of household income, workers may be pushed towards longer commutes, shared accommodation or locations farther from employment centres. These pressures can affect labour mobility, household formation and the ability to save.

The central lesson is that salary levels alone provide an incomplete picture of economic wellbeing. A city may offer high wages but still impose substantial housing costs; another may have lower wages yet leave households with more money after rent. And even a comparatively large remainder is not a measure of financial comfort until other essential expenses are taken into account.

Sources: Euronews Business — Income after rent: How much is left across European cities? (16 October 2026); Deutsche Bank Research Institute, Mapping the World’s Prices 2026 (as cited by Euronews).