The number of low-income households that are spending more than 40% of their disposable income on housing has reached alarming rates.
The results of a newly published study by the Luxembourg Institute of Socio-Economic Research for the Observatoire de l’Habitat housing authority show that 45% of households in the lower quintile (20% of the population with the lowest living standards) are tenants at market rates. Among them, the share of households spending more than 40% of their disposable income on housing rose from 41.7% in 2010 to 63.9% in 2018.
Tenants renting at market rate in the 2nd lowest income quintile are also affected, with some 26.8% in 2018 paying out more than 40% of their disposable income for rent (compared to just 9.8% in 2010). This means that for some 18,000 households, housing is eating away at close to half of their disposable income.
“This research shows that the housing crisis in Luxembourg does not affect all households in the same way,” said housing minister Henri Kox (Déi Gréng). “So, we need to make it a priority to help low-income people who are spending a high percentage of their income on housing.”