VALLETTA (MALTA) (ITALPRESS/MNA) – Most tenants in Malta’s private rental market are financially overburdened, with only a small minority able to afford their homes without breaching recommended housing cost limits, a new study has found.
The report, published by Solidarjetà and based on Housing Authority data, assessed 38 household scenarios against median rents across multiple localities. It found that affordability is “the exception, not the rule” for renters.
Using the Housing Authority benchmark that housing costs should not exceed 25% of disposable income, the study classified households from “affordable” to “overburdened”. Only three scenarios met affordability criteria, and only with government subsidies.
Rising property values have worsened the situation. Since 2017, house prices have climbed by 59%, with Malta’s total housing value tripling to €88 billion over a decade. Rents have increased faster than wages and cost-of-living adjustments.
Single minimum-wage earners cannot afford a one-bedroom apartment in any of the 20 localities studied, while even individuals earning €35,000 a year are overburdened across all localities and apartment sizes.
The report also highlights flaws in the Housing Benefit Scheme, warning of a “subsidy trap” where earning slightly above eligibility thresholds can result in the loss of hundreds of euros in monthly support.
Regionally, the Northern Harbour area is the least affordable, while Gozo remains out of reach for many unless higher subsidies apply. Families fare worst, with couples and children largely unable to afford median rents.
Solidarjetà called for rent controls, expanded housing benefits, longer leases, and a major increase in public and affordable housing, warning that without intervention, affordability pressures will continue to intensify.
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