On average, rent took up 37.85% of wages in the grand duchy, Imovirtual, a real estate listings website, said on 9 August.

Rent is typically “deemed affordable if it constitutes roughly 30% of” wages, Imovirtual stated. Figures above that threshold indicate a “rental market is becoming harder to afford for lower incomes.”

Luxembourg placed behind Ireland (where rent consumes an average of 40.19% of wages) and Portugal (38.31%), and ahead of Israel (37.76%) and Switzerland (35.08%).

The lowest ratios were recorded in Korea (23.93%), Germany (24.16%), Austria (24.23%) and Spain (24.72%).

Graphic: Imovirtual

Imovirtual is a Portuguese property site ultimately owned by the South African e-commerce conglomerate Naspers. The firm said it developed its housing study using data from the OECD and the crowdsourced polling site Numbeo.