Half of big city residents in Poland spend over one-third of their salaries on rent

More than half of residents in Poland’s largest cities are spending over 30% of their salaries on rent, according to a report from the Polish Economic Institute (PIE). In March 2024, rent prices in most major cities surpassed this threshold, placing a significant financial burden on renters.

The median salary across Poland in March 2024 stood at PLN 6,549, with the average salary at PLN 8,605. However, rental costs in cities like Warsaw, Kraków, Gdańsk, and Wrocław meant that for half of the working population, rent consumed over 30% of their income. In Warsaw, the average rent for an apartment was PLN 4,200—48% of the median salary in the capital.

“In cities such as Gdańsk, Kraków, and Wrocław, renters paid between 35% and 38% of their median salaries for housing, with Łódź being the only exception, where the figure stood at 29%,” the PIE report highlighted.

For those earning a median income, the cost of renting a flat in Warsaw represented 44% of their salary. In comparison, cities like Poznań and Łódź had lower rent-to-income ratios, at 33% and 27%, respectively.

The PIE report also pointed to a wider issue affecting housing affordability in Poland. A study conducted by the Warsaw School of Economics revealed that between 2017 and 2022, 35% of Polish households faced what is termed a “rent gap.” These households earned too much to qualify for state-subsidized housing, but not enough to afford rent or purchase a home that met their basic needs.

“The rent gap takes into account not only housing prices and wages but also the structure of supply and how well it fits with market demand,” the report concluded, shedding light on the complexities of Poland’s housing market.

Source: PIE and ISBnews