Bulgaria Records Third-Largest Decline in House Price-to-Income Ratio in EU

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The house price-to-income ratio in Bulgaria was 16.2% lower in 2025 than in 2015, according to Eurostat data made public on Monday. This was the third-largest decline in the EU, after Romania and Finland. Across the EU as a whole, the indicator increased by 6.8%, meaning that, on average, house prices rose faster than household incomes.
The ratio increased in 17 EU Member States and declined in the remaining ten. The largest increases were recorded in Portugal (60.8%), followed by the Netherlands (34.3%), Hungary (26.5%), Czechia (25.8%) and Spain (24.5%). The sharpest declines were seen in Romania (42.8%), Finland (25.2%) and Bulgaria (16.2%).
The house price-to-income ratio compares changes in house prices with changes in per capita household income, relative to a base year. It increases when house prices rise faster (or fall more slowly) than income, decreases when they rise more slowly, and remains unchanged when both change at the same rate. The data show how the ratio has changed in each country. They do not reveal which country requires the fewest years of annual income to afford a home.
Eurostat also monitors a standardized house price-to-income ratio, which shows whether the ratio of the house price index to the household income is above or below its long-term average since 2000.
The data show two clear peaks: in 2007, ahead of the global financial crisis, and in 2022. In these years, the house price-to-income ratio stood 7.9% and 7.4% above its long-term average, respectively. Between these peaks, the ratio decreased to 6.4% below its long-term average in 2014, before rising again. After 2022, it fell in 2023 and 2024, then edged back above its long-term average in 2025 (+0.03%).
The standardized house price-to-income ratio helps identify a build-up of potential housing market imbalances over time and is therefore used as an auxiliary indicator in the Macroeconomic Imbalance Procedure scoreboard.
The house price-to-income ratio and its standardized version describe one dimension of housing affordability. Other complementary dimensions include the number of years of income needed to buy a dwelling and the cost of financing the purchase through a mortgage. Ongoing housing expenses are covered by other Eurostat indicators, such as the share of housing costs in disposable household income.

Bulgaria Records Third-Largest Decline in House Price-to-Income Ratio in EU THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-11-09 03:27:00

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