Differences in Perceptions of the Housing Cost Burden Among European Countries

Sarah Grace See, Marco Brandolini, Federica Coroneo, Elena Giarda, C Moriconi

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    In this article we perform a comparative analysis of the self-reported perception of the housing cost burden as an indicator of potential financial distress. We employ EU-SILC data on five European countries – France, Germany, Italy, Spain and the UK – for years from 2005 to 2010. Wide differences emerge between Germany, France and the UK on the one hand, and Italy and Spain on the other. Estimation of the housing cost burden by means of logit models allows us to relate the probability of a high burden to both micro and macro-economic variables and to identify differences among countries. As for socio-economic variables, our results reveal the existence of life-cycle effects and a lower burden for homeowners. As for aggregate variables, GDP growth and higher consumer confidence contribute to reducing the probability of a high burden, whereas high levels of unemployment and inequality contribute to increase it. At country level, we observe differences in the size of the impact of the explanatory variables on the probability of perceiving a high burden, especially for covariates such as age, homeownership status and education.
    Original languageEnglish
    Pages (from-to)99-126
    Number of pages28
    JournalJournal of Applied Finance and Banking
    Issue number4
    Publication statusPublished - 19-Apr-2022


    • housing cost burden
    • perceived financial distress
    • logit
    • EU-SILC

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