
Not even half of Germans own their own home
The figure comes from an income and consumption survey conducted by the Federal Statistical Office. A total of 56,000 households took part in the representative survey. Only 47.5 percent of them stated that they owned a house or other real estate. This puts Germany in a poor position compared to other European countries. Only Switzerland has a lower home ownership rate. In France, 62 percent of the population lives in their own homes, in the UK the figure is 70 percent, and in Finland 74 percent.
However, the list is dominated by relatively economically weak Eastern European countries. In Hungary and Slovakia, 90 percent of people live in their own homes, and in Romania the figure is as high as 97 percent. The European figures refer to the population and not to households. Since owner-occupied households are generally larger than rented households, the figures are slightly higher here. Nevertheless, one thing is clear: Germany is performing poorly.
This is probably also strongly related to the German mentality of renting. Although real estate prices in Germany are significantly higher than in Romania, people also earn more here. There are several reasons why many Germans prefer to rent rather than buy. Historically, after the Second World War, people invested more in rental apartments than in owner-occupied properties. Culture also plays a role: home ownership is much more important in other cultures. True to the motto: "My home is my castle." In Germany, on the other hand, many tenants value freedom and flexibility.
In addition, rental apartments here are of a much higher standard than in other countries. And last but not least, banks make it difficult for Germans to finance home ownership. Compared to other countries, a much higher equity share is required here. So-called subprime financing, which in other countries also provides low-income earners with loans at high interest rates, is rather atypical in Germany. This may be reasonable, as buyers here take a big risk in getting into debt, and it is also an uncertain business for the banks.
However, this also means that Germans miss out on the opportunity to build up a secure retirement nest egg through real estate. After all, real estate is a good investment that is protected against inflation. While the money for rent is simply gone at the end of the month, paying off a loan is a good investment.
Are you looking for your own property? Register now in our search database free of charge and without obligation. We will contact you with suitable offers and put you in touch with reputable financiers.
Photo: © scornejor/Depositphotos.com