Housing costs across the European Union are increasingly out of reach for minimum wage earners, with new data from the European Trade Union Confederation (ETUC) and Eurostat highlighting a widening gap between rents and incomes. Sofia is among the cities most affected, placing Bulgaria in a group of capitals where basic housing has become financially unsustainable for low-paid workers.

Sofia among Europe’s least affordable capitals

In the Bulgarian capital, the average rent for a two-room apartment is reported at around 954 euros, while the minimum wage as of January 1, 2026 stands at 620 euros. This creates a gap where housing costs reach 154 percent of the lowest legal income. In practical terms, a minimum wage worker in Sofia cannot cover rent without exceeding their entire monthly salary, needing additional funds beyond their full income.

The situation is particularly concerning given that roughly 13 percent of workers in Bulgaria earn the minimum wage. At the same time, broader EU data indicates a long-term upward trend, with rents across Europe increasing by more than 20 percent since 2013 and property prices rising by nearly 50 percent, according to European Commission figures.

Europe-wide pressure on low incomes

The problem is not limited to Bulgaria. In several EU capitals, housing costs significantly exceed minimum wages. Prague records the highest imbalance, with rent at 1,710 euros compared to a minimum income of 924 euros, meaning a burden of 185 percent. Lisbon follows at 168 percent, while Budapest, Bratislava, Athens, and Riga also exceed or approach 150 percent.

Even in wealthier capitals such as Paris and Madrid, minimum wages fall short of covering rent, while only Brussels and Berlin show relatively lower ratios, with housing costs consuming around 70 to 76 percent of minimum income.

Capital cities versus regional areas

The ETUC analysis also shows a sharp divide between capital cities and smaller towns. In Bulgaria outside Sofia, around 45 percent of the minimum wage typically goes toward rent, which is significantly lower than in the capital but still above the EU average household housing cost share of 23.6 percent.

A similar pattern appears in other countries, such as Greece, where housing costs outside Athens are notably lower but still place pressure on low-income households.

Calls for intervention

Trade unions are urging stronger European and national action, including enforcement of minimum wage rules, stronger collective bargaining systems, and expanded investment in social housing.

Esther Lynch of the ETUC warned that the combined pressure of housing, food, and energy costs is pushing workers into financial distress. She stated that “high housing costs and low wages are pushing people into poverty and the economy into recession. The gap between rents and wages is completely unsustainable.” She added that many workers are left with almost no disposable income, making even basic financial stability or essential healthcare costs increasingly unattainable.