Mortgage crisis - What are Europeans giving up to meet the costs?
Soaring housing costs are fast becoming Europe's "Grinch," dampening people's desire to make Christmas plans. Some 75% of Europeans say they have had to cut spending just to make mortgage payments over the past 12 months, according to a survey of more than 20,000 people in 23 countries.
Ireland and Hungary are feeling the pressure the most, with a full 90% of homebuyers reporting that they have “tightened their belts.” Romanians and Maltese are in an even tougher situation, with 93% saying they have been forced to cut back on spending, while Italy leads Europe’s top five economies with a rate of 86%.
For more than one in four people surveyed by RE/MAX Europe (26%), financial constraints are so severe that they reduce the motivation to throw a Christmas party. Finns, one of the few populations where poverty rates have increased since 2015, are the most reluctant to host events, with 40% opting for simple celebrations. Similarly, at least one in three Romanians (35%) and Hungarians (33%) prefer to spend Christmas at home.
But the financial burden of festive gatherings also affects guests, who spend an average of 2.3 hours traveling to celebrate with their loved ones. Residents of Turkey make the longest journeys, averaging 4.5 hours. Meanwhile, the Dutch enjoy shorter journeys of just 1.3 hours, and 40% of respondents overall face journeys of under an hour.
Romantic dates, nightclubs and festivals are the first victims of the cost of living crisis, with 41% of Europeans giving up these events to make mortgage payments. The cuts are deepest in Greece, where almost six in ten people (58%) have cut their nightlife budget, while a majority of Lithuanians see this as unacceptable (21%). Luxury food and alcohol come in second place for cuts, with 38% of respondents saying they are cutting back on these expenses, with a peak of 61% in Malta.
Holidays come in third (37%), with over half of Poles (52%) and Irish (51%) planning to stay home. But that’s not an option for Lithuanians, with just one in ten people cancelling holiday plans due to mortgage payments. Also, 13% admit to saving on basic everyday needs, including personal hygiene products, with Germany and Finland well above average, at 22% each.
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