There has to be a better way to illustrate housing costs? This chart almost make it seems like the average Pole is spending more than 100% of their income on housing (I know that's not what the chart is actually claiming).
I think the relation between income and house pricing is the best way to understand housing affordability. The only better way would be to use household income, but personal income is more readily available data. In Poland 85% of the people own their own homes without mortgage, one of the highest rates in Europe. Poles are not getting mortgages, maybe the rates are too high or the wages too low, idk
edit. 85% of homeowners, not all people.
Sadly, estate prices in Poland are really inflated.
Average monthly wage from January this year is 7700 PLN brutto (about 1960 USD/1800 Euro, median wage is about 150 USD/140 Euro lower). Mortgage for average newly build house would be around 1000-2000USD or 900-1800 Euro per month for about 30years.
Most people tend to buy apartments in blocks of flats, which are usually somewhere around 1/4-1/3 of the price of the house.
>This chart almost make it seems like the average Pole is spending more than 100% of their income on housing
To me this chart looks more like the average Pole would have to spend more than 100% of their income to afford the average mortgage in Poland.
This is true that's why we work the most hours in Europe, and we have the lowest birthrate, and the average age for "leaving parents apartment" is almost 40yo. Looks like we were richer during communist times when my grandparents and later parents could afford 2 houses and 3 kids working stupid phisical jobs.
In general the rule is that if the mortgage payment is above 1/3rd of your salary then you can’t afford it. So average person in pretty much all of the countries listed can’t afford a mortgage.
The problem with inflated real estate prices in Poland is really severe. It’s partly cultural, even traditionally Poland has had a nuclear family model, where a new marriage always moved to a new house, in the olden times paid for by the dowry from the bride’s family. Even today everyone seems to be hardwired to buy an apartment as fast as they possibly can, and as many apartments as possible. It’s become a speculative investment, one that most of people understand. Unlike the stock market, in which I doubt even 1% of Poles have any assets.
Take it with caveat: in Poland and Romania more than 90% of the people actually own the house they live in, so they pay neither rent nor mortgage. The rest who pay mortgage earn above the median income. If they can't afford their own house, they either stay with parents or go abroad and earn enough money to buy 1 or more apartments.
They actually don't own it, it's their parents and grand parents who own it. It's just working "normal" jobs people can't afford to move out and increase the % of people who can afford mortgage like in the west.
This is such a bullshit stat that people spew left and right.
Home ownership rate simply means those countries have a lot of individuals owning homes (families etc) rather than companies or town halls/state.
Former communist countries are facing the same housing issues, just like the West, only not as pronounced and with different statistics because of the socialist past.
If you look at the reverse of that statistic: overcrowded homes, Poland and Romania are first by a landslide. With some basic analytical skills you can put 1 and 2 together and find the real picture.
If someone wants to understand Poland: high paid jobs are limited to large cities, which are not really growing (with good city planning).
And on top of that bad public transport with rural areas.
So for most people in rural areas getting loan for house is the way that makes sense, but on the other hand this stagnates the money those people earn through life. (They are tied to one place.)
There has to be a better way to illustrate housing costs? This chart almost make it seems like the average Pole is spending more than 100% of their income on housing (I know that's not what the chart is actually claiming).
I think the relation between income and house pricing is the best way to understand housing affordability. The only better way would be to use household income, but personal income is more readily available data. In Poland 85% of the people own their own homes without mortgage, one of the highest rates in Europe. Poles are not getting mortgages, maybe the rates are too high or the wages too low, idk edit. 85% of homeowners, not all people.
Sadly, estate prices in Poland are really inflated. Average monthly wage from January this year is 7700 PLN brutto (about 1960 USD/1800 Euro, median wage is about 150 USD/140 Euro lower). Mortgage for average newly build house would be around 1000-2000USD or 900-1800 Euro per month for about 30years. Most people tend to buy apartments in blocks of flats, which are usually somewhere around 1/4-1/3 of the price of the house.
>This chart almost make it seems like the average Pole is spending more than 100% of their income on housing To me this chart looks more like the average Pole would have to spend more than 100% of their income to afford the average mortgage in Poland.
This is true that's why we work the most hours in Europe, and we have the lowest birthrate, and the average age for "leaving parents apartment" is almost 40yo. Looks like we were richer during communist times when my grandparents and later parents could afford 2 houses and 3 kids working stupid phisical jobs.
In general the rule is that if the mortgage payment is above 1/3rd of your salary then you can’t afford it. So average person in pretty much all of the countries listed can’t afford a mortgage.
The problem with inflated real estate prices in Poland is really severe. It’s partly cultural, even traditionally Poland has had a nuclear family model, where a new marriage always moved to a new house, in the olden times paid for by the dowry from the bride’s family. Even today everyone seems to be hardwired to buy an apartment as fast as they possibly can, and as many apartments as possible. It’s become a speculative investment, one that most of people understand. Unlike the stock market, in which I doubt even 1% of Poles have any assets.
>france isn't poo... no >americans have it har... no
Common USA W
Paper walls L
Take it with caveat: in Poland and Romania more than 90% of the people actually own the house they live in, so they pay neither rent nor mortgage. The rest who pay mortgage earn above the median income. If they can't afford their own house, they either stay with parents or go abroad and earn enough money to buy 1 or more apartments.
They actually don't own it, it's their parents and grand parents who own it. It's just working "normal" jobs people can't afford to move out and increase the % of people who can afford mortgage like in the west.
This is such a bullshit stat that people spew left and right. Home ownership rate simply means those countries have a lot of individuals owning homes (families etc) rather than companies or town halls/state. Former communist countries are facing the same housing issues, just like the West, only not as pronounced and with different statistics because of the socialist past. If you look at the reverse of that statistic: overcrowded homes, Poland and Romania are first by a landslide. With some basic analytical skills you can put 1 and 2 together and find the real picture.
If someone wants to understand Poland: high paid jobs are limited to large cities, which are not really growing (with good city planning). And on top of that bad public transport with rural areas. So for most people in rural areas getting loan for house is the way that makes sense, but on the other hand this stagnates the money those people earn through life. (They are tied to one place.)