The European Central Bank has published a Statistics Paper Series report on the 2023 wave of the Household Finance and Consumption Survey, based on harmonised data from almost 90,000 households in 20 euro area countries, as well as the Czech Republic and Hungary. The report finds that the inflation surge between 2021 and 2023 was the main driver of household balance sheet and income developments. Because nominal asset values and wages did not keep pace with the 14.1% cumulative rise in the price level, the real value of assets, liabilities and incomes fell for most households. Net wealth losses were larger for asset-rich households, while poorer and more indebted households generally lost less and in some cases benefited from the erosion of liabilities in real terms, resulting in a slight fall in net wealth inequality. By contrast, income inequality increased as real gross incomes fell in the lower and middle parts of the distribution, including for the median household, while the top income decile recorded gains. Across the euro area, the share of households owning their main residence fell by 1.0 percentage point to 60.1%, with larger declines among younger households and those in the bottom net wealth quintile. The inflation-adjusted conditional median value of total assets declined by 1.3% to EUR 172,200, while the share of indebted households edged down to 41.5% from 42.5% and the median mortgage debt used to acquire the main residence fell by 8.1% to EUR 84,700. Debt burden indicators generally improved because debt fell more than assets and incomes, although the bottom net wealth quintile still showed moderate signs of financial fragility, including a debt-to-assets ratio close to 100% and a mortgage debt service-to-income ratio of 21.1%. Median net wealth rose 2.5% to EUR 140,100 while mean net wealth fell 1.5% to EUR 312,000. Median gross household income fell 3.4% to EUR 37,100, food spending was broadly stable in real terms, utility spending rose 3.2%, and the share of households fully or partly refused a loan increased slightly to 11.0% while overall credit constraints remained broadly stable.
European Central Bank2026-06-16
European Central Bank publishes 2023 household finance survey showing inflation reduced real assets and incomes while slightly narrowing wealth inequality
The European Central Bank published the 2023 Household Finance and Consumption Survey, covering almost 90,000 households across 20 euro area countries plus the Czech Republic and Hungary. It shows that the 2021 to 2023 inflation surge reduced the real value of assets, liabilities and median incomes for most households, slightly narrowing net wealth inequality but increasing income inequality. Homeownership and indebtedness fell modestly, debt burdens eased, and food spending was broadly flat in real terms while utility spending increased.