Only a third of Europeans live in rented houses. Why?

According to recent studies, only 30% of Europeans rent housing for permanent residence. Such data is generalized, since the percentage ratio is different in each country. For example, in Cyprus a little more than 68% live in their own homes. For other regions, homeownership rates look like this:

• Romania - 96%;
• Slovakia - 92%;
• Croatia and Hungary - 91%.

The lowest rates were recorded in Germany, Austria and Denmark, with 40% to 50%.

What affects the percentage?

The percentages described above depend on several factors. Most of all, the cost of housing affects the indicators. In countries where it is relatively low, 80-90% are owners of their own homes. This means that they do not have the need to rent housing. If you look at Germany, then the figures are much lower there due to the fact that real estate is quite expensive. At the same time, renting a house or apartment is much cheaper. Therefore, almost half of the country's population pick this option.

An important factor is the terms of mortgages. If potential buyers are offered the opportunity to take out a mortgage at a low interest rate or take advantage of special government programs that provide certain benefits, then the likelihood of making a purchase increases. Not all European countries provide such opportunities, and therefore the number of sales transactions does not show growth.

The last of the key factors is the overall economic development in the country. Often, more housing is rented in those countries where the economy is well developed. In such regions people often move to get the opportunity to get a job in a particular company, open their own business, and more. If such opportunities are limited, then people become less mobile.

What to expect from 2022?

As for the forecasts for the current year experts note that thanks to the stabilization of the economy, it is expected that the European real estate market will not only reach the pre-pandemic level, but will continue its rapid development. As a result the percentage of home ownership will increase. However, it should be noted that the epidemiological situation continues to affect the indicators.