Luxembourg's Special Fund for Affordable Housing spent €474 million in 2025, up from €224 million in 2024, its annual report shows. The pipeline reached 5,348 subsidised homes, but critics note delivery still lags a waiting list that has almost doubled since 2021.
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.
Luxembourg's government says it remains committed to building 6,000 homes a year, but in a written reply to parliament its housing and economy ministers acknowledged they cannot say whether the target is reachable. Output has run far below the goal for decades, permits are falling and the construction sector is shrinking.
Renting in Luxembourg comes with real legal protections, including a rent ceiling tied to the property's value and a cap on security deposits. Here is what every tenant should know.
Housing is Luxembourg's defining domestic challenge: prices have far outpaced incomes, driven by population growth, scarce buildable land, and limited supply. We lay out the forces at work.