To Buy or to Rent, that is the Question: Differences in Homeownership According to Economic and Demographic Parameters in Europe

Elena Zanlorenzi and Ilona Schaeffler

ERES from European Real Estate Society (ERES)

Abstract: Does it make more sense to buy or to rent a home from an investment perspective? The answer, in an era of historically low interest rates and perpetually rising real estate values appears to be obvious: buy. But it could also be a better financial move from an investing standpoint to rent rather than to buy because people rarely consider some major costs of owning a home like operating costs and the impact of a mortgage.But what explains the differences in homeownership rates in Europe? A general trend is the increase in homeownership rates in most EU countries reflecting demographic and economic developments. This trend has also been greatly boosted by policies encouraging home ownership. Today homeownership ranges from over 90% in some Eastern European countries (Romania and Bulgaria) as well as in Southern European Countries like Italy and Spain, to 40% in Germany and Austria.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2013-01-01
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