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Khalid ElFayoumi, Jorge Salas, and Andreas Tudyka

Growth in Real Rental Payments Figure 14. Rental Cost Developments Figure 15. Advanced Europe: Real Rental Price Growth in Selected Countries and Cities from 2013 to 2018 Figure 16. Rental Housing and COVID-19 Figure 17. Impact on Rental Affordability from Income Changes Figure 18. Drivers of Rental Affordability Figure 19. Share of Overburdened Tenants Renting at Market Price that Receive Housing Allowance Figure 20. Poverty-Reducing Effect of Housing Allowances Figure 21. Capitalization of Rental Allowances Figure 22. Rent Control and Real Rent

Khalid ElFayoumi, Ms. Izabela Karpowicz, Ms. Jenny Lee, Ms. Marina Marinkov, Ms. Aiko Mineshima, Jorge Salas, Andreas Tudyka, and Ms. Andrea Schaechter
Many European economies have faced pressure from rental housing affordability that has widened social and economic divergence. While significant country and regional differences exist, this departmental paper finds that in many advanced European economies a large and rising share of low-income renters, the young, and those living in cities is overburdened. In several locations, middle-income groups also increasingly face rental affordability issues.
Khalid ElFayoumi, Jorge Salas, and Andreas Tudyka

about 1.3 percent in real terms since 2013 on average in the countries analyzed here, 0.5 percentage point more than median real incomes. For the lowest decile of income earners in advanced Europe, rental cost outpaced disposable income growth by 0.7 percentage point annually. Rental price surges and affordability pressures have been particularly harsh in some major European cities. Among the 14 (of 24) countries that experienced an annual average real rent increase of at least 1 percent since 2013, 11 saw bigger increases in their capital city than for the country

Mr. Nadeem Haque and Mr. Peter J Montiel