Nearly two-thirds of European renters (64%) said they lack the funds for a down payment on a home, while more than half (58%) don’t believe they can save enough for a down payment over the next three years, according to a new survey released by Adevinta, an online classifieds group in the European real estate market.
The pursuit of homeownership is viewed by nearly half (47%) of the survey’s respondents as the most sensible financial option compared to renting – a notable exception to this belief comes from Germany, where the share is at 35%. And most of the Europeans in the survey who don’t own homes (62%) claimed they only rent because they can’t afford to buy.
But elevated mortgage rates in the Eurozone nations have tripled over the past two years and 58% of respondents said were unable to secure a mortgage due to high interest rates. And more than half (54%) of non-homeowners claimed that they are struggling to find a rental property within their budget while 58% said they can’t live where they want to because rent or property prices are too high.
“Every country has its own nuances but our data shows home seekers across Europe are being hindered by major affordability challenges,” said Roman Campa, head of real estate and emerging verticals at Adevinta and CEO of Adevinta Spain. “The good news is the outlook is finally brightening. Should inflation keep falling, and interest rate cuts continue, we may see more home-seekers able to size up or get a foot on the ladder for the first time in key European markets like France, Spain, Italy, Germany and Benelux. This could mean both more opportunity, and more competition for home seekers.”
The survey polled 5,179 adult respondents across Germany, Spain, France, Italy, and the Benelux nations between April 30 and May 7.
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