It costs 143% of minimum wage to rent a two-bedroom flat in Valletta – report

Renting a two-bedroom flat in Valletta now costs the equivalent of 143 per cent of Malta’s gross minimum wage, according to a new analysis by the European Trade Union Confederation (ETUC), a whopping 43 per cent increase from 2024. 

The report, based on EU data, found that the average cost of renting a two-bedroom apartment in many European capital cities now exceeds the gross monthly minimum wage entirely.

Housing and utility bills remain the largest expenditure category for households across the European Union. According to the latest Eurostat figures, 23.6 per cent of household spending in the EU goes toward housing, water, electricity, gas and other fuels.

In Valletta, the burden on minimum wage earners is particularly acute.

The analysis found that average rent in the Maltese capital now consumes the equivalent of 143 per cent of the country’s gross minimum wage, placing Valletta among the least affordable European capitals for low-income workers.

This means that a worker earning minimum wage would theoretically need to spend their entire monthly salary on rent – and still fall significantly short.

The report also noted that because both the ETUC and Eurostat calculations are based on gross wages rather than net take-home pay, the real financial pressure faced by workers is likely even higher.

Among European capitals, Prague recorded the highest burden, with rent for a two-bedroom flat reaching 185% of the gross minimum wage. Lisbon followed at 168%.

The share also exceeded 150% in:

• Budapest (159%)
• Bratislava (158%)
• Sofia (154%)
• Athens (153%)
• Riga (151%)

Meanwhile, Valletta ranked among a second group of capitals where rent also exceeds minimum wage levels entirely, alongside:

• Paris (138%)
• Tallinn (131%)
• Madrid (125%)
• Bucharest (122%)
• Warsaw (117%)
• Dublin (113%)
• Ljubljana (105%)
• Vilnius (105%)

The report comes amid broader concerns over cost-of-living pressures and the impact of rapid population growth, tourism expansion and labour migration on Malta’s housing market. With an election around the corner, parties are making their plans known on how to deal with this affordability issue.