Luxembourg attracts highly qualified international workers but loses half of them within five years, with housing costs cited by 66% of newcomers as the top reason to leave, according to the LUXTALENT study. The government is responding with record affordable-housing investment, though most effects lie years away.
STATEC and the Observatoire de l'Habitat report Luxembourg house prices flat year-on-year in late 2025 while advertised rents rose 3%, deepening the divide between sidelined buyers and a tightening rental market.
Luxembourg's official housing report for the first quarter of 2026 shows sale prices stabilising, with the STATEC index up 0.7% on the quarter and 1.7% over the year, while advertised apartment rents rose 4.4% over twelve months — nearly three times inflation. The divergence leaves buyers facing a calmer, cheaper-to-finance market while new tenants continue to absorb the steepest increases.
Luxembourg's Chamber of Employees has welcomed the government's social reforms but says they fall short, demanding higher wages, pensions and family benefits as STATEC data show entrenched working poverty and housing strain.
STATEC's latest forecast keeps the next wage-indexation tranche pencilled in for the second quarter of 2027, making a second automatic pay rise in 2026 unlikely as tripartite energy measures contain inflation.
EU staff are paid the same in Luxembourg as in Brussels despite living costs that an official study put 10.5% higher, mostly housing. Unions say the gap drives vacancies and a new €500 allowance falls short.
Luxembourg's social minimum wage rose 2.5% on 1 June 2026 to €2,771.33 gross a month for unskilled work and €3,325.59 for qualified work. A guide to the hourly rates, the under-18 tiers, gross-to-net deductions and how indexation moves the figure.
Luxembourg's parliament has begun examining the €432.5 million Resilienzpak energy-relief package, even as a looming US-Iran deal pushes oil prices to their lowest since March.