Housing policy is key to bridging Europe’s persistent wealth divide

Housing policy has emerged as a critical factor in shaping household prosperity in a new report from Eurofound which confirms persistent wealth inequality across the EU. Based on data from 2010 to 2021, the fresh analysis reveals that wealth distribution is more unevenly distributed than income, highlighting the disproportionate control of assets by a small portion of the population.

The report, Unequal wealth: Exploring socioeconomic disparities across the EU, highlights significant national variations. eastern and southern Member States, such as Slovenia and Slovakia, report the lowest levels of wealth inequality, while Germany, Spain, and Ireland rank among the most unequal.

Across the EU, the wealthiest five per cent of the population controls a disproportionately large share of total wealth, while the poorest twenty per cent often hold little or even negative net wealth. This divide is particularly acute in Estonia, where the top five per cent holds almost half of the country’s wealth.

While overall wealth inequality has remained largely stable over the past decade, the report underlines that a targeted policy approach is essential to addressing these disparities. Initiatives that prioritise affordable rental housing, improved social housing systems, and targeted support for vulnerable groups are likely to be most effective.

The report also highlights a compelling link between home ownership and lower national inequality. Countries with high rates of home ownership, such as Czechia and Slovakia, have lower overall wealth inequality than large tenant populations, a stark contrast to the tenant-dominated markets of Germany and the Netherlands.

The findings show that housing is the primary asset for middle- and lower-wealth households yet rising costs and high rental burdens disproportionately affect young people, renters, and single-parent households. In countries like Latvia, Slovakia, and Greece, mortgage payments can consume nearly all of a low-income household’s earnings.

Finally, the report highlights the potential for a compulsory, EU-wide wealth declaration to enhance transparency, improve the monitoring of asset distribution, and guide more effective social policy design. Without such targeted action entrenched wealth gaps risk growing further, undermining social outcomes across Europe.

• Download the report: Unequal wealth: Exploring socioeconomic disparities across the EU