Housing monthly income commitment: taking into account housing servicing costs, French homeowners are well positioned in Europe

The household monthly income commitment is an indicator of housing affordability that measures how much of household income is dedicated to housing expenditures.

In its usual version, based on actual household expenditures, it does not take into account the cost of the housing servicing that owners provide themselves when they occupy their dwelling. However, it does take this into account for tenants, through the rent they pay. This indicator is therefore of limited value when comparing the burden of housing expenditure between landlords and tenants and for making international comparisons. Therefore, two alternative monthly income commitment indicators are proposed, which correct this lack of comparability by integrating the said cost for all types of occupants.

In 2015, the average monthly income commitment for all households in mainland France will rise from 19% in its usual definition to 24% in its alternative versions. The monthly income commitment of tenants in the unregulated sector is still higher than that of landlords, but the gaps between occupancy status are narrowing. In a Europe reduced to around ten countries, and with this new definition of monthly income commitment, France is among the countries with a moderate rate, alongside Portugal and Austria.