Differences of wealth between residents and commuters

On equal pay, a resident who owns his home is twice « richer » than a commuter who owns his home too, because of the difference of evolution of property prices in Luxembourg compared to neighboring regions.

“The difference between  property prices in Luxembourg and in the border regions can be considered as the most important factor explaining the difference in wealth between workers of resident households and those households border ,” said Wednesday the Central Bank of Luxembourg ( BCL) , based on two surveys just published.

The value of their respective house, and especially evolution of this value, explains that.

According to the two surveys published by the BCL , the median net worth today is around 295,500 euros for a household resident against 167,000 euros for a cross-border home.

In total net wealth , the gap is even more important as this wealth reached 607,500 euros for a resident household, against 240,000 euros for a cross-border home.

The reason of this difference lies in the fact that the value of a home has increased on average by 6.2% per year in Luxembourg, against 3.4% in border regions.

According to other various calculations, there is a difference of average wealth of 127% between a resident and a border household.

Ecrire un commentaire