Renters are rising

The numbers of renters are rising as home ownership drops in 22 countries globally.

Looking at rental versus ownership trends in numerous countries around the world, the current comparison looks something like this. (Source: Swinton Insurance)

                                % own                  % rent

Romania              96.8                        3.6

Slovakia                90.1                        9.9

Croatia                  90.5                        9.5

Lithuania              89.7                        10.3

Hungary               86.0                        14.0

Poland                  84.2                        15.8

Bulgaria                83.6                        16.4

Norway                82.6                        18.5

Malta                    81.9                        18.7

Estonia                 81.8                        18.2

Latvia                    81.6                        18.4

Iceland                 78.7                        21.3

Czech Republic  78.5                        21.3

Spain                     77.1                        22.9

Japan                    75.8                        38.7

Slovenia               75.6                        24.4

Luxembourg      74.7                        25.3

Portugal               74.7                        23.3

Greece                 73.3                        26.7

Belgium                72.7                        27.3

Italy                       72.4                        27.6

Finland                 71.6                        28.4

Cyprus                  70.7                        29.3

Ireland                  69.5                        30.5

Netherlands       69.4                        30.6

Canada                 66.4                        33.5

Sweden                65.2                        34.8

UK                          65.0                        35.0

Australia               65.0                       30.9

France                  64.4                        35.6

USA                       64.2                        43.1

New Zealand     63.2                        36.3

Denmark             60.5                        39.5

Austria                  55.4                        44.6

Germany             51.4                        48.6

Switzerland        42.5                        58.7

Home ownership is dropping on a global scale, with 22 out of 36 developed countries – or 61 per cent – seeing a decline in the past 10 years.

In February 2018, it was suggested that New Zealand homeownership was at a 60-year low.

According to the Australian Bureau of Statistics in June 2019, around two-thirds of Australian households either owned their home, or were buying it, the lowest proportion since the ABS started collating figures.

Based on the global data gathered, it appeared that one month’s salary was approximately twice the cost of a month’s rent. For home ownership, a look at salaries and costs per square metre indicated there were factors other than salary that might contribute to lower home ownership. For instance, Switzerland has high salaries but not the highest home ownership rate by any means. It does, however, have a high and ever-increasing cost of living.

Personal preferences cannot be negated. People residing in any of the countries listed can have numerous factors influencing their decision when it comes to renting or buying.

SOURCE: RE/MAX Australia