Galway has been ranked as one of the least affordable cities in Europe for renters, with the average cost of a city-centre apartment consuming almost 80% of a worker’s take-home pay, according to a new analysis of housing affordability across the continent.
The study, conducted by financial media platform TradingPedia, places Galway sixth among 130 European cities surveyed, highlighting the growing pressure facing renters in Ireland's western capital.
According to the report, the average monthly rent for a one-bedroom apartment in Galway city centre reached €2,100 last month. With average net earnings standing at €2,701 per month, tenants are spending 77.8% of their income on rent alone.
After housing costs are paid, the typical renter is left with just €601 to cover all other expenses, including utilities, food, transport and savings. The figure represents a sharp decline in disposable income, leaving renters with €387 less than they had available a year earlier.
The findings place Galway ahead of many major European cities traditionally associated with high living costs, including Rome, London, Berlin and Paris.
The report identified Galway as the least affordable city in Ireland for renters, reflecting the ongoing imbalance between housing supply and demand that has driven rental costs to record levels in recent years.
Dublin also ranked among Europe's most expensive rental markets, placing 25th overall. The average rent for a one-bedroom apartment in the city centre was calculated at €2,142 per month, equivalent to 61.7% of the average post-tax salary.
With typical net earnings of €3,470 a month, Dublin renters are left with approximately €1,328 after paying rent.
While affordability pressures remain significant in the capital, Cork performed comparatively better. Ranked 66th in Europe, the city recorded average rents of €1,682 per month for a city-centre one-bedroom apartment.
Based on average monthly net earnings of €3,756, renters in Cork spend less than 45% of their salary on housing costs, leaving considerably more disposable income than their counterparts in Galway or Dublin.
However, analysts noted that city-wide salary averages may not fully reflect the earnings of residents who can afford premium city-centre accommodation, potentially distorting affordability comparisons.
The report also highlighted the severe housing pressures affecting other European cities. Lisbon topped the rankings as the continent's least affordable rental market, where the average cost of a one-bedroom city-centre apartment consumes 99% of a worker's monthly salary.
Renters in the Portuguese capital are left with an average of just €15 after paying housing costs, underscoring the scale of affordability challenges facing residents.
Housing experts have linked Lisbon's rental crisis to a combination of limited housing supply, strong investor demand and an influx of highly paid remote workers relocating from abroad, factors that have placed additional pressure on local housing markets.
The latest figures add to growing concerns about rental affordability across Ireland, where housing costs continue to outpace wage growth in many urban areas, leaving a growing number of workers struggling to secure accommodation while maintaining a reasonable standard of living.
