Credit: EU-SILC 2016-2023
On Thursday 30 October 2025, Luxembourg’s Housing Observatory published its 44th report, analysing the rental market and comparing Luxembourg with France, Belgium and Germany.
In a European context marked by severe housing pressures, the study highlighted Luxembourg’s particular situation: despite a higher standard of living than in neighbouring countries, private tenants remain especially exposed to a growing housing cost burden.
The report noted that in Luxembourg, overall housing costs (rent and charges) have continued to rise faster than incomes. Between 2016 and 2023, the housing cost ratio for private tenants increased from 32% to 39%, meaning that nearly four euros out of ten are now spent on rent and related costs. This was the sharpest increase among the countries compared, while ratios stabilised or declined elsewhere. Luxembourg has reached a level close to Belgium (40%), but remains higher than France (34%) and particularly Germany (28%).
It further highlighted inequalities by income and household composition. The 20% of households with the lowest incomes spend more than half of their income on housing (55%), while the housing cost ratio for single-parent families reached 50% in 2023, and 43% for single adults, making these the most exposed groups on the housing market.
Despite these pressures, the study observed that Luxembourg stands out for the high standard of living of its private tenant households, which remains above that of neighbouring countries. This paradox, higher average incomes but heavier housing costs, illustrates the distinctiveness of Luxembourg’s housing market. It reflects both the lack of affordable housing supply and the relatively limited regulation of the rental sector, particularly compared with Germany.
The report concluded by underlining the importance of further developing affordable housing solutions and ensuring regular monitoring of housing market trends in comparison with neighbouring regions and countries.
