The Housing Cost Overburden rate is the percentage of the population living in a household where the total cost of housing exceeds 40% of their disposable income.
Narrow definitions of housing costs focus exclusively on rent or loan repayments. This measure takes a more expansive view on costs; they include mortgage repayments, or rent, plus the cost of utilities, expenses related to regular maintenance and expenditure on structural insurance.
Costs relating to housing are the main items of expenditure for many European households. Alongside rent or mortgage payments, household expenses also include utilities such as water, electricity, gas or heating. This measure provides an indicator for households struggling with all their housing costs. Cost-burdened households often find themselves without sufficient funds for other necessities such as food, transportation, child care, and clothing