Trends in wealth inequality and household wealth composition in the EU

Across Europe, many young adults face increasing challenges in establishing independent housing. In several Southern and some Eastern European countries, more than 40% of people aged 25–34 still live with their parents, while homeownership in this age group remains relatively low. This pattern reflects both structural housing market conditions and broader socioeconomic factors shaping the transition to adulthood.

Although cultural norms and family traditions play a role, economic constraints appear increasingly important. High housing costs relative to income, limited access to affordable rental housing, labour market uncertainty and barriers to mortgage financing all contribute to delayed residential independence. These pressures can postpone family formation, reduce mobility and slow wealth accumulation in younger generations.

Housing is the primary asset for most households, so difficulties in establishing independent housing may have long-term implications for wealth inequality and social mobility. Improving housing affordability and labour market opportunities for young people therefore remains an important policy challenge across Europe.

This finding comes from a joint project of the Budapest Institute and Bruegel examining wealth dynamics, composition and inequality across European countries between 2010 and 2022. The project provides an in-depth analysis of the ECB Household Finance and Consumption Survey (HFCS), covering 22 EU countries, and includes detailed work on savings behaviour, housing wealth and the middle class. The study presenting the research results is available on the Eurofound website.

The project was commissioned by Eurofound and was implemented by the Budapest Institute in collaboration with Bruegel, a Brussels-based think-thank.