A study carried out by Compare The Market has revealed that Luxembourg has the biggest gap between house prices and rent of all member countries of the Organisation for Economic Co-operation and Development (OECD).
The study analysed average house and rent prices in OECD countries to reveal those which have the biggest price gap between rent and house prices.
Luxembourg ranked highest with a staggering price gap of 51.1%, reflecting the country's high cost of living. The Grand Duchy also had the highest rent and house prices on average, with rent costing $3,017 (€2,641) a month, paired with a steep estimated monthly mortgage payment of $4,558 (€3,990).
On the opposite end of the scale, South Africa had a 0.8% price difference, with rent prices averaging at $865 (€757) and the average mortgage payment being $872 (€763).
Two countries also had negative price difference percentages, with Finland and Italy having cheaper house prices overall than rent.
The full study is available at https://www.comparethemarket.com.au/home-contents-insurance/renting-vs-buying-2021/.