Private landlords account for a relatively small share of households in Luxembourg but are heavily concentrated among the country’s wealthiest households, according to new research from the Luxembourg Housing Observatory.
The study found that resident private landlords held, on average, 3.6 times more gross wealth than households without rental income.
Researchers estimated that Luxembourg had around 40,000 landlord households in 2024, compared with an average of about 30,000 over the period examined by the study.
The research, based on household surveys covering 2004 to 2024 and 2010 to 2023, provides a detailed picture of resident private landlords and their financial and demographic characteristics.
Landlords make up a large share of Luxembourg’s wealthiest households
Private landlords represented around 13% of households in Luxembourg.
Despite their relatively small share of the population, they accounted for 59% of households in the country’s top wealth decile in 2023.
The researchers found that landlords were overrepresented among the upper income and wealth groups.
Average gross assets among landlord households were approximately €3.25 million, compared with around €890,000 for households without rental income.
The report describes these differences between landlords and non-landlords but cautions that the findings are descriptive and do not establish a causal relationship between being a landlord and having greater wealth.
Almost half of landlords received an inheritance or donation
Inheritance and other wealth transfers also feature prominently in the profile of Luxembourg’s private landlords.
Around 49% of landlords said they had received a substantial inheritance or donation at some point, compared with 22% of non-landlords.
Property and land transfers were also significantly more common among landlords. More than one-third reported receiving property or land through inheritance or gifts, compared with about 11% of households without rental income.
The average value of inheritances and donations received by landlords was approximately €525,000, more than twice the €235,000 recorded among non-landlords.
The Housing Observatory said the frequency and size of these transfers highlighted the importance of inheritances and donations in the accumulation of household wealth.
However, the researchers did not conclude that inheritance alone explains the wealth gap between landlords and other households.
Luxembourg landlords are older on average
The study also identified significant demographic differences.
The average landlord was 57 years old, compared with 49 among households without rental income.
Retirement was also more common among landlords. Around 41% were retired, compared with 24% among non-landlords.
Landlord households also had higher average disposable incomes.
Their average disposable income was approximately €81,000 a year, around 60% above the €51,000 recorded for households without rental income.
Rental income adds to household wealth
The average landlord household received approximately €30,000 in gross rental income each year.
That represented around 16% of total gross household income.
Residential property accounted for the overwhelming majority of rental activity. More than 90% of landlords rented out at least one residential property, while commercial buildings, garages, land and farms represented much smaller shares of landlord activity.
The findings therefore show that private rental property is an important component of household finances for Luxembourg’s landlords, alongside other forms of wealth and income.
Housing affordability remains a wider European issue
The Luxembourg findings come against a broader European debate over housing affordability, rental supply and property ownership.
The country’s experience is different from that of Ireland and other EU housing markets, but the relationship between property ownership, rental income and household wealth raises questions that are relevant across Europe.
M10news has examined how different European cities are responding to housing affordability pressures, including the use of public housing, cooperatives, public land and cost-rental models in Europe’s affordable housing models.
These approaches differ substantially from Luxembourg’s private-landlord market, illustrating the different ways European housing systems provide rental and affordable housing.
Luxembourg’s private rental market
More than 90% of the landlords surveyed rented out residential property, making private landlords an important part of Luxembourg’s rental housing supply.
The study does not, however, suggest that all private landlords are wealthy. Rather, landlords as a group are disproportionately represented among households with higher levels of income and wealth.
That distinction is important when considering the findings alongside housing affordability.
The research describes the characteristics of people who already own rental property; it does not establish whether private landlord ownership itself produces higher wealth.
A growing landlord population
The estimated number of resident private landlord households reached approximately 40,000 in 2024, compared with around 30,000 on average over the wider study period.
The increase provides further context for Luxembourg’s private rental market, where property ownership remains an important source of household assets.
The findings also add to the wider discussion about who owns rental homes and how housing wealth is distributed.
For comparison, M10news tracks developments in Ireland’s rental sector through its Ireland Rental Market Tracker, including changes in rents and the wider private rental market.
What the findings mean for European housing
Luxembourg’s private landlords represent a relatively small proportion of households, but their concentration among the country’s wealthiest households is striking.
The research points to several characteristics of the landlord population: they are generally older, have higher disposable incomes, hold substantially greater gross assets and are more likely to have received significant inheritances or property transfers.
At the same time, the study does not establish that becoming a landlord causes higher wealth.
Instead, it provides a detailed snapshot of how rental property ownership fits into the distribution of wealth in Luxembourg.
That makes the research relevant to the wider European housing debate, particularly as governments consider how to expand rental supply while addressing affordability and access to housing.
The issue is also becoming increasingly important at EU level. M10news has previously examined the EU Affordable Housing Act and the European Commission’s proposed measures aimed at addressing housing stress and increasing affordable housing supply.
Luxembourg’s experience shows another side of the housing debate: not only how much homes cost, but also who owns the properties that generate rental income and how housing assets are distributed across households.
Source: Luxembourg Housing Observatory, as reported by Luxembourg Times.
This article reports the findings of the research and does not imply that being a landlord causes higher household wealth.
