Study Paper No. 207: The Luxembourg Household Finance and Consumption Survey: Results from the Fifth Wave in 2023

20.04.2026

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Authors: P. Lindner, T. Mathä, G. Pulina and M. Ziegelmeyer

This report presents the main results of the latest edition of the survey on the financial and consumption behavior of households in Luxembourg. This representative survey collects data on the assets, liabilities, income, and consumption of individual households. This information is used to analyze the overall composition of household debt and wealth, as well as their distribution within the population. In Luxembourg, this survey is the only source of detailed data on the balance sheets of individual households.

The 2023 edition of this survey is based on a representative sample of 3,699 households residing in Luxembourg. The results are weighted to represent all households in the resident population. When comparing different editions of the survey, it must be taken into account that the sample is selected to be representative of the year in question and that the households selected are generally different from one edition to another.

The results presented in this report refer to the situation in Luxembourg in 2023. Since then, several macroeconomic developments, including the evolution of inflation and interest rates, have had an impact on household wealth and indebtedness. The impact of these developments on household finances will be assessed in the next wave, which will be carried out between October and December 2026.

Gross Household Assets

Household assets consist of real assets and financial assets. In general, real assets, such as real estate, vehicles, and valuables, represent the largest part of assets. In 2023, real assets accounted for 81% of all assets held by households in Luxembourg, and their average value was 1,058,000 euros per household. Vehicles were the most common real assets (held by 84% of households), followed by the main residence (held by 62% of households). Other real estate was held by 32% of households and valuables by 29%. These shares are similar to those of 2021. In terms of value, the two most important real assets were the household's main residence (59% of the value of real assets) and other real estate (32%). The other components represented much smaller shares: 6% for self-employed business assets, 3% for vehicles, and 1% for valuables.

In 2023, financial assets accounted for 19% of all assets held by households. In terms of value, financial assets consisted of bank deposits (45%), risky assets such as investment funds (19%) or listed shares (9%), and other financial assets (27%), including shares in unlisted companies, accounts managed by investment specialists, loans to friends or family, private companies, government bonds, or voluntary pensions / life insurance. Bank deposits were the most widespread type of financial asset, held by 97% of households. The average value of financial assets amounted to 249,000 euros per household.

Household Indebtedness

In 2023, half of households were indebted, a decrease of 3.5 percentage points compared to 2021. Nearly one-third of households held mortgage debt, while 29% had another type of debt. In value, mortgage debt accounted for most of total household debt (90%). Across all households, the average value of debt decreased by 7%, dropping from 161,000 euros per household in 2021 to 150,000 euros in 2023. The share of households taking out consumer loans decreased by nearly 4 percentage points to stand at 20% in 2023.

Since 2021, developments in various debt burden indicators have sent mixed messages. On the one hand, the median values of the total debt-to-asset ratio and loan-to-value ratio decreased, as did that of the debt-to-gross income ratio. On the other hand, the median values of the debt service-to-income ratio and mortgage debt service-to-income ratio increased slightly, reflecting the rise in interest rates, particularly for variable-rate mortgages.

Household Net Wealth

In 2023, the median value of household net wealth (after deducting debt) was 676,000 euros. Compared to 2021, this represents a decrease of 6% in nominal terms and 15% in real terms (after adjustment for consumer price inflation).

These declines in net wealth mainly reflect decreases in the value of real assets and financial assets, which were larger than the decrease in debt. The share of owner-occupiers decreased, reducing the effect of a 4% increase in the value of their housing. Conversely, the share of rental real estate increased, while its average value decreased. Regarding financial assets, the average value also decreased considerably (-23%) compared to 2021.

Gross Household Income

While the value of assets and liabilities is estimated at the time of the survey, the level of gross income refers to the year preceding the survey. Thus, in 2022, the average value of household gross income was nearly 125,000 euros, representing a nominal increase of 8% compared to 2020 (no change in real terms). The median income was 96,000 euros in 2022, an increase of 8% compared to 2020. Income levels vary considerably across population groups, reaching their peak among the most educated households and households aged 45 to 54 years. On average, gross income was significantly lower among tenants than among households who owned their housing (with or without a mortgage).

Inequality

Wealth inequalities, measured by the Gini coefficient, are practically unchanged compared to 2021. In 2023, the richest 5% of households held one-third of the net wealth of all households, and the richest 20% held nearly two-thirds, two indicators close to the situation in 2021.

The content of this study should not be perceived as representative of the opinions of the Central Bank of Luxembourg or the Eurosystem. The opinions expressed reflect those of the authors and not necessarily the position of the Central Bank, its management, or the Eurosystem.

This study paper is available on the BCL website: www.bcl.lu

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