**Title: Seven in Ten Cypriots Live in Homes Bigger Than They Need**
Cyprus has been identified as one of the leading examples in Europe of homes that exceed the needs of their occupants, with over 70% of residents in rural areas living in properties deemed larger than necessary. According to the latest figures from Eurostat, Cyprus ranks among the EU countries with the highest levels of under-occupied housing, alongside Ireland and Belgium. Only the Netherlands has a higher rate of under-occupied homes in rural areas, at 73.3%.
Eurostat defines under-occupation as a situation where a household has more rooms than required based on the number and ages of the residents. For instance, a family home that remains occupied by a couple after their children have moved out would be classified as under-occupied. This classification is particularly relevant in Cyprus, where larger homes have traditionally been a staple of the housing market.
As of 2025, approximately 69.4% of the Cypriot population was living in under-occupied homes, significantly above the EU average of 33.4%. This trend has been consistent, as previous Eurostat data from 2024 also indicated that around 70% of Cypriots lived in homes considered larger than necessary, compared to 67% in Ireland and 64% in Malta.
Cypriot homes generally offer more space than those in other European countries. On average, residents in Cyprus have access to two rooms per person, compared to the EU average of 1.7 rooms per person. Additionally, nearly 75% of the population resides in houses rather than apartments, further contributing to the prevalence of under-occupied homes.
The rural housing situation in Cyprus starkly contrasts with the EU average. While 41.3% of people in rural areas across Europe live in under-occupied homes, the figure in Cyprus exceeds 70%. In urban settings, the situation is markedly different; only 26.2% of city dwellers in the EU reside in under-occupied homes.
In contrast to the high rates of under-occupation, Cyprus experiences one of the lowest overcrowding rates in Europe. In 2025, only about 2.2% of the population lived in overcrowded conditions, compared to an EU average of 16.8%. Interestingly, overcrowding was highest in towns and suburbs in Cyprus, at 3.4%, while cities had a rate of 2.3%, and rural areas reported just 0.7%—the lowest among the three categories.
However, a closer examination reveals a divide within the housing market. Among renters in the private market, 8.3% were found to be living in overcrowded conditions, significantly higher than the national average. Conversely, only 0.6% of homeowners without outstanding mortgages or housing loans faced overcrowding. This disparity highlights a complex housing landscape where an abundance of larger homes coexists with challenges faced by renters and those seeking affordable housing.
The rising costs of housing in Cyprus have also been notable. Recent Eurostat data indicated that house prices increased by 6% year-on-year in the fourth quarter of 2025, while rents rose by 4.2% in March 2026, both surpassing the corresponding EU rates. Despite these increases, Cyprus has performed relatively well in terms of housing affordability. In 2025, only 2.4% of residents spent more than 40% of their disposable income on housing, the lowest figure in the EU. Additionally, homeownership in Cyprus stood at 69.2%, slightly above the European average.
These statistics illustrate a nuanced housing scenario in Cyprus, characterized by a significant amount of living space occupied by smaller households, particularly in rural areas. Meanwhile, renters and those in search of adequate housing face a different set of challenges in the market.
The broader context of social issues in the EU also reflects concerns about poverty and social exclusion. In 2025, approximately 20.9% of the EU population, or 92.7 million people, were at risk of poverty or social exclusion. In Cyprus, this figure was lower, at around 17.1%, which translates to roughly 167,000 individuals.
In summary, while Cyprus grapples with high levels of under-occupied housing, particularly in rural areas, it also boasts low overcrowding rates and relatively favorable housing affordability metrics. This complex picture underscores the need for targeted housing policies that address the diverse needs of both homeowners and renters in the island's evolving real estate landscape.