How rising rents, living costs are fuelling anger across Europe

NEW DELHI: On Halloween, France is bracing for something far more unsettling than the usual festivities. Thousands are expected to take to the streets on Saturday, as 70,000 police and gendarmes are mobilised across the country amid fears of fresh unrest. Shops have boarded up, security has been tightened and authorities are seeking to prevent a repeat of the violence that erupted earlier this month.

Behind the protests lies a familiar frustration: rising living costs, strained public services and the growing difficulty of making ends meet.The anger is not confined to France. Europe has long been associated with high living standards, strong social security and the promise of a comfortable life. But for a growing number of its residents, that promise is being tested by the monthly arithmetic of survival.

In Lisbon, two people earning local salaries and sharing a three-bedroom city-centre apartment are left with just €253 after paying rent. In Milan, the amount is €697. Across the continent, rising housing costs, expensive essentials, stagnant wages and mounting pressure on public services are turning household budgets into a source of public discontent.From housing demonstrations in Spain and Portugal to protests over wages, education and government policies in France, Italy, Belgium and Germany, the grievances differ but point to a broader unease.

The question confronting Europe is no longer simply whether people have jobs or earn a salary, but whether their earnings are enough to afford the life they were promised.The contrast with northern Europe is stark. The same calculation leaves a working couple in Zurich with €9,140 after rent, while €8,783 remains in Geneva.These figures, drawn from Deutsche Bank Research Institute's Mapping the World's Prices 2026 report, compare the combined net salaries of two local earners with the monthly rent of a three-bedroom city-centre apartment.

They do not account for groceries, electricity, transport, healthcare or other household expenses. The calculation illustrates the gap between local earnings and city-centre rents rather than the actual spending patterns of every household.The difference is not simply about how much people earn. Zurich has Europe's highest rent in the comparison, at €5,502, but also the highest average net salary, at €7,321 per person.

Lisbon, by contrast, has an average net salary of €1,408 against a city-centre rent of €2,561. In 11 of the 28 European cities examined, rent exceeds one local net salary.The difference is not simply about how much people earn. Zurich has Europe's highest rent in the comparison, at €5,502, but also the highest average net salary, at €7,321 per person. Lisbon, by contrast, has an average net salary of €1,408 against a city-centre rent of €2,561.

In 11 of the 28 European cities examined, rent exceeds one local net salary.The rent-to-income gap is only the beginningThe housing burden becomes clearer when measured against household income rather than nominal rent. Eurostat's Housing in Europe 2025 report found that EU households spent an average of 19% of their disposable income on housing in 2024. The share was 36% in Greece, 26% in Denmark and 25% in both Germany and Sweden.

For households at risk of poverty, housing consumed 37% of disposable income across the EU.The longer-term trend is equally revealing. Between 2010 and 2024, house prices across the EU increased by 53%, while rents rose 25%. General consumer prices increased by 39% during the same period. In other words, housing prices outpaced overall inflation, adding to the pressure on tenants and prospective homeowners.Greece presents one of the clearest examples of the squeeze.

Apart from having the highest housing expenditure relative to disposable income among the countries listed, it also recorded a 43% share of people living in households with arrears on mortgage, rent or utility bills in 2024, the highest in the EU.For younger Europeans, the challenge extends beyond finding a job. Eurostat's 2025 data show that 9.1% of people aged 15-29 lived in households spending at least 40% of disposable income on housing.

The figure was 25.6% in Greece and 26.9% in Denmark. Across the EU, 26.9% of young people aged 15-29 lived in overcrowded households.The problem is not confined to rent. Food, another unavoidable household expense, accounts for a substantial share of monthly expenditure. Eurostat estimates that food and non-alcoholic beverages accounted for 13.1% of total household expenditure in the EU in 2024.

The share was 18.1% in Portugal, 15.7% in Greece and 14.7% in Italy. In Germany, it was 11.1%, while France recorded 12%.Food may be cheaper, but is it affordable?A comparison of food prices across Europe also reveals a gap between the cost of a grocery basket and the ability to pay for it.Eurostat's 2025 comparative price-level index, which sets the EU average at 100, puts food and non-alcoholic beverage prices at 106.8 in France, 105.3 in Greece, 104.5 in Belgium, 102.4 in Germany, 102 in Portugal and 101.1 in Italy.

Spain, at 95.3, is below the EU average. Romania recorded one of the lowest levels, at 79.8.The comparison also exposes why cheaper groceries do not automatically translate into greater affordability. Romanian households, for example, spent 23% of their total expenditure on food and non-alcoholic beverages in 2024, compared with the EU average of 13.1%. Portugal's share was 18.1%.

Lower prices can still absorb a larger portion of household budgets when incomes are lower.The latest inflation figures add another layer. Eurostat reported that eurozone inflation reached 3.8% in September 2026, up from 3.2% in August. Energy prices rose 18.9% year-on-year, while food, alcohol and tobacco prices increased 1.3%. Within the food category, unprocessed food inflation was 4%.The distinction between inflation and price levels is important.

Slower inflation does not mean groceries have become cheaper. It means prices are increasing …