Click me

Home Ownership Trends Around the World

VETEEE ELLE Buying or Renting? HOME OWNERSHIP TRENDS AROUND THE WORLD Home ownership rates vary significantly around the world. In fact, Germany has what some may consider a low rate at 53%. We get an insight into home ownership trends around the world and find out who is buying and who is renting. 69% 65% AAAI 10 % Since 2004, the overall rate of homeownership in the U.S. has declined from 69% to 65%. In Spain, around 80% of people live in owner-occupied housing. less developed countries Citylab 2013 Research by Citylab in 2013 found less developed countries have consistently higher levels of homeownership, while more advanced nations combine higher levels of economic development with substantially lower levels of homeownership. advanced nations "The most tangible cornerstone that lies at the heart of the American Dream, at the heart of middle-class life," Barack Obama declared in a speech in August 2013, is "the chance to own your own home." "High home-ownership in a nation is like a treacle blanket thrown over the surface of the country and economy. With a high degree of owner-occupation, everything slows," said Andrew Oswald, Professor of Economics, University of Warwick. Home Ownership Rates Compared (OECD Countries) Global Homeownership rates 60 70 80 90 Who is Buying? The Age Group Homeownership rates by age group Selected OECD Countries Germany (2007) --- Germany (1994) - -· United States (2007) United States (1997) 100 90 80 70 60 50 40 30 20 10 25-34 35-44 45-54 55-64 65-74 75-84 Age group Is Home Ownership a Measure of Economic Strength? Case Study: Germany Population GDP 82,726,626 $3634.82 billion Unemployment Rate Home Ownership Rate 5.2% 53% Why Does Germany Have a Low Rate of Home Ownership Compared to Other Countries? Cheap Rents Figures provided from the Global Property Guide and based on a two bedroomed apartment. 6,865 6,198 3,472 3,047 1,976 1,765 O Brazil Canada K. Australia * Hong Kong Germany UK Country Renter-friendly Regulations Regulations are quite favourable to renters in Germany. For example, German law allows state governments to cap rent increases at no more than 15% over a three-year period. Tax Treatment Home ownership isn't actively encouraged by the German government. For example, unlike high-homeownership countries like Spain, Ireland and the US, Germany doesn't let homeowners deduct mortgage-interest payments from their taxes. Without that deduction, the benefits of owning and renting are more evenly balanced. Pros and Cons of Renting T- No mortgage payments, maintenance costs and sale transaction expenses a Can invest more money in shares or real estate a More potential for investment diversification across Pros all asset classes Can't make the place your own and you're usually subject to short leases O Will be paying rent forever so will need higher income Cons stream once retired O Not hedged against rising property prices JACKSON ROWE WE KNOW REAL ESTATE References: 2004

Home Ownership Trends Around the World

shared by StephenCastrisos on Aug 21
It compares home ownership rates around the world – it asks who is buying? Where are they buying? We take Germany as a case study (a country with relatively low home ownership rates) and ask “Is ...




Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy


Click the code to copy
Customize size