Our latest ING International Survey on Homes and Mortgages asked nearly 15,000 people what they think of the housing market in their country. People say it’s becoming increasingly difficult to buy a home and we are seeing a generational shift in ownership expectations
Housing affordability challenges aren’t news, particularly for first-home buyers.
Our research continually finds people perceive buying a house to be difficult because it is expensive, regardless of the personal importance placed on home ownership. However, what does astound us in our latest report is just how much expectations differ across age groups; within a single generation. We find that people now expect to buy much later if they expect to buy at all.
The notion of a home encompasses so much more than a place to live, we attach feelings of comfort, safety, and achievement to where we live, often overvaluing our home against market prices because it means so much to us.
This speaks to the continued importance that is placed on achieving home ownership – a large majority agree owning is better than renting financially yet that it is continually harder for young people to step on the property ladder.
And young people agree, one in three say they have given up on buying a home, while only a small portion expect to do so before they turn 30.
This leaves a generation who is moving out later and largely moving out into rental arrangements, either alone, with friends or with a partner. In this current environment of high rental costs and stagnant wages, a high portion of take-home pay is dedicated to the costs of renting - leaving little left over for living, and saving for the ultimate dream of ownership.
Despite the obvious economic and cultural differences, these results seem to be consistent across the 15 countries surveyed.