Mortgage crisis: What are Europeans cutting back on to make ends meet?

Soaring housing costs are fast becoming the Grinch of Europe, dampening people's desires to make social plans for Christmas.

Around 75% of Europeans say they've had to cut back on spending just to keep up with mortgage payments in the past 12 months, according to a survey among more than 20,000 people in 23 countries.

Ireland and Hungary are feeling the squeeze especially hard, as a striking 90% of homebuyers there report having tightened their belts, says the 2025 Housing Trend Report.

Romanians and Malteses are faring even worse, with 93% saying they've had to cut back, while Italy leads the pack of Europe's big five economies with an 86% rate.

Home alone: Who's skipping Christmas dinner?

For more than one in four people surveyed by RE/MAX Europe (26%), financial constraints are strong enough to dull the motivation to host any Christmas gatherings.

The Finnish — one of the few populations where poverty rates have gone up since 2015 — are the most hesitant to open their homes, with a solid 40% opting for low-key festivities.

Similarly, at least one in three Romanians (35%) and Hungarians (33%) would rather spend Christmas behind closed doors.

But the financial strain of Christmas get-togethers also affects guests, who tend to spend 2.3 hours on the road to celebrate with their loved ones.

Turkish residents take the longest trips, stretching to 4.5 hours on average.

Meanwhile, the Dutch enjoy short trips of just 1.3 hours, and 40% of respondents in general face journeys under an hour.

The journey is often shortest for those living alone, with 25% living within 30 minutes of their destination.

Keep the party going or stay home: Which Europeans cut back on what?

Date nights, clubbing, and festivals are the first casualties of the cost-of-living crunch, with 41% of Europeans sacrificing outings for mortgage payments.

The cut runs deepest in Greece, where nearly six out of 10 people (58%) slashed their night-time budgets, while most Lithuanians see that as a non-starter (21%).

Food treats and alcohol take second place on the chopping block, with 38% of respondents saying they're reducing indulgences, and a peak of 61% in Malta.

Holidays come in third (37%), with more than half of Polish (52%) and Irish citizens (51%) planning to stay home. Again, this is not an option for the Lithuanians, with only one in 10 people cancelling holiday plans due to mortgage payments.

Other budget-saving measures affect clothes (cited by 29% of people), electronics (26%), subscription services like Netflix or Spotify (25%) and hobbies (22%).

Strikingly, 13% admit cutting back on everyday essentials, including toiletries, with Germany and Finland way above the average, each reporting 22%.