Close to a third of Germans have ‘no interest’ in owning their own home, REMAX study finds

Some 31% of Germans say that they have ‘no interest’ in owning their own home, a new study by real estate network REMAX has found.

This compares to a European average of 15%, the study, which was based on responses from more than 21,000 people across multiple countries, found.

Germany has a high proportion of people who rent their homes, at 63%, followed by Switzerland at 62%, while Austria and Finland were both at 48%.

Rental arrangements

Several reasons were given by respondents in Germany for not pursuing home ownership. These include satisfaction with current rental arrangements, reported by 57% of those without interest in buying, and a desire to avoid obligations associated with housing ownership, reported by 30%. A smaller share, 18%, cited flexibility as a reason for preferring renting.

“The high rental rate at least ensures that tenants can react more flexibly to job changes,” commented Loredana Scirè, press spokeswoman for REMAX Germany. “The immense property transfer taxes in Germany, in particular, hinder flexible property transfers for owners.”

Some 32% of respondents in Germany live in owner-occupied housing, either fully owned or being paid off. This compares to higher ownership rates in parts of Southern and Eastern Europe, including Romania at 83%, Bulgaria and Croatia at 80%, and Italy and Lithuania at 79%.

“The consistently low rate of homeownership in Germany is a warning sign,” Scirè added. “Especially with regard to retirement planning, real estate is a crucial factor, as it enables rent-free living in retirement and thus drastically reduces monthly fixed costs or generates additional income from renting.”

Property financing

The report notes differences in the time required to save for a property deposit. In Germany, respondents reported an average savings period of 10.2 years for a down payment on a first property. The European average was 7.3 years.

“For many citizens, financing remains the biggest hurdle to acquiring a home for their own use,” said Scirè. “Lowering the required equity stake would also be helpful in enabling more people to become homeowners. Real estate agents would then be required to provide advisory support not only in selecting a property but also in securing financing.”

The survey was conducted in Austria, Bulgaria, Croatia, Czech Republic, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovenia, Spain, Switzerland, Turkey, and the United Kingdom. Read more here.