The dream of owning your own home

Few things are as fundamental to one's life as home. In a representative study by Interhyp, 76 percent of respondents expressed a desire to own their own property. Yet Germany remains a nation of renters, with the homeownership rate stagnating at around 45 percent. What prevents people from fulfilling their dream, and what is the current housing situation in Germany?

At the heart of the living room, the largest and most frequently used room in German homes, stands a huge sofa, according to a Forsa survey commissioned by Ikea. This seating/lounging/chilling area represents a cozy and comfortable home, and indeed, almost all respondents (97 percent) in the Interhyp living space study associate home with concepts such as "security," "comfort," and "privacy.".

Closeness to family and friends

Home is a sanctuary where we can simply relax and be ourselves, but it's also the starting point for social connections. Over 90 percent of those surveyed stated that proximity to family and friends is important or very important to them. Overall, the ideal property should be well-located and comfortable. It should be within easy reach of the workplace, well-equipped, and spacious, but not too expensive. Germans are quite pragmatic in their approach and willing to compromise.

When asked in which areas they would make compromises if their desired property (for example in competitive metropolitan areas) was unavailable, 60 to 70 percent of respondents cited room layout, quality, level of equipment, construction method and size.

The least willingness to compromise was shown regarding comfort (22 percent), followed by pet ownership, a nice view, and a good location. Regarding the level of housing costs, i.e., the monthly burden of rent or mortgage payments, only 38 percent are willing to make concessions.

It is striking that the ideal home and the reality of living are not fundamentally different. When asked about their dream homes, Germans remain grounded and keep the question of feasibility in mind. Only a few of those surveyed indulged in luxurious or extravagant fantasies with luxury features such as a sauna and a private (whirlpool) pool. Surprisingly, smart home systems are only part of the ideal home for 23 percent of respondents. The reason is the concern that burglars could hack the systems.

Your own property

The dream property is more likely a detached single-family home in the outskirts of a small or large city: A full 76 percent desire their own property, ideally with a modern fitted kitchen, garden (73 percent), terrace or balcony, guest toilet, and garage. Above all, however, they hope for more freedom (in terms of design), independence from a landlord, and security in old age.

But the homeownership rate in Germany remains stagnant at around 45 percent, as an IW study shows. What's preventing reluctant renters from fulfilling their dream?

People in Germany are sensible and cautious; buying property is a well-considered and carefully planned process. As the study shows, Germans have great respect for the step of becoming homeowners. 83 percent of current renters are concerned about the financial burden, and 69 percent are afraid of making a mistake with the financing.

However, the surveyed property owners do not confirm these concerns: only 30 percent reported a high financial burden from the loan. And the worry of making mistakes in the financing was confirmed for just 13 percent.

91 percent of homebuyers are very satisfied with their decision – no wonder, since with an average of 146 square meters, they have almost twice as much living space as renters (77 square meters). 65 percent of owners also expect their property to appreciate in value in the coming years.

Another aspect that makes taking the step towards homeownership more difficult is long-term planning: 92 percent of those surveyed agree with the statement "When buying a property, you should plan to keep it for at least 15 to 20 years." A full 85 percent see it as a decision for life.

Sources: wohnraumstudie.interhyp.de, managermagazin.de, immonewsfeed.de