Despite geopolitical crises, economic uncertainties and growing concerns about retirement provision, the younger generation in Germany is surprisingly optimistic about the future. This is shown by the latest study, “Generation Zuversicht”, conducted by the Institute for Future Policy and the Association of Private Building Societies. As reported in recent days by AssCompact, the General-Anzeiger and boerse-express, amongst others, one of the study’s most striking findings is the continued strong aspiration to own a home. This is positive news for the property sector: more than eight in ten young people would like to live in their own home in the long term and associate it primarily with security, independence and the freedom to shape their own living environment.
The representative survey of 1,001 people aged between 16 and 24 paints a picture of a generation that is fully aware of the challenges it faces, yet at the same time believes in its own future. 59 per cent of those surveyed look to the future with confidence, and 64 per cent are convinced that hard work and effort can lead to a better personal future. Family, quality of life, professional success and financial security are particularly important to young people.
Of particular relevance to the property sector is the importance young people attach to housing. 82 per cent of those surveyed would like to own their own home in the future, whilst only nine per cent wish to rent permanently. It is noteworthy that financial motives are not the primary consideration. Respondents cite independence, security and freedom to shape their own home as the most important reasons for wanting to own their own home. Aspects such as investment or retirement provision follow some way behind. Home ownership is therefore viewed primarily as part of a self-determined way of life.
At the same time, the study makes it clear that many young people see significant barriers to becoming homeowners. High purchase costs and a lack of equity are perceived as key challenges. Another key concern is financial insecurity in retirement. Two-thirds of those surveyed fear that their future pension or savings will not be sufficient to maintain their standard of living. Against this backdrop, home ownership is becoming increasingly important as an important pillar of private retirement planning.
Preferences regarding future places of residence are also of interest. Whilst many young people currently live in larger cities, a significant proportion prefer smaller towns and villages in the long term. Only around one in three can envisage living permanently in a metropolis with more than 500,000 inhabitants. This development could be particularly significant for the areas surrounding Berlin. Already today, numerous municipalities in the commuter belt surrounding the capital are benefiting from sustained high demand for housing. The results of the study suggest that this trend could continue in the coming years.
Furthermore, affordable housing is one of the most important political priorities for the younger generation. 94 per cent of those surveyed see a need for action in this area. This places the issue just behind education and ahead of numerous other social challenges. For both politicians and the property sector, this underscores the need to create sufficient housing whilst at the same time making it easier for people to become homeowners.
“The study clearly demonstrates that the desire for home ownership among young people remains as strong as ever. In Berlin and the surrounding area in particular, we can see just how strong the need for security, stability and long-term security is. To capitalise on this potential, the framework conditions for home ownership must be improved and the barriers to buying a home must be significantly reduced,” says Jacopo Mingazzini, CEO of The Grounds.
