An increasing number of consumers in the eurozone are struggling to keep up with housing and utility payments, following years of above-target inflation and rising borrowing costs, according to a survey by the European Central Bank (ECB).

The proportion of low-income households expecting to delay payments for utilities or rent rose to over 20% in the first quarter of 2024 from about 15% in 2023, ECB researchers Omiros Koufavas and Desislava Rusinova noted in an article published on Monday. The rate of households struggling with mortgage payments nearly doubled to 30%.

"Given the present and future impacts of both increased interest rates and the loss of purchasing power due to inflation, the ability of households to meet housing costs and mortgage payments is a concern," the article said.

Interest rate hikes to curb inflation have hit the real estate market hard, causing new investments to decline. This has increased pressure on rents, which were already high in many European cities before the rise in inflation.

The ECB is likely to start lowering interest rates in June, with several Governing Council members and many policymakers expressing concerns that strict monetary policy is putting excessive strain on the 20-member eurozone economy.