In this article, we will be covering the 25 countries with the lowest home ownership rates. If you wish to skip our detailed analysis, you can move directly to the 5 Countries with the Lowest Home Ownership Rates.
Home Ownership Across Borders: An Overview
As reported by the World Economic Forum, the ratio of home ownership to renting differs across geographical locations. Switzerland and Germany are rental societies with nearly two-thirds of their populations not owning homes in 2021. On the other hand, property ownership is deemed a norm in countries such as China and Russia. China has been reported to be a mass public rental society in the second half of the 20th century. The country’s transition to an ultra-ownership society was backed up by privatizing existing public housing and encouraging private home ownership. Thus, Chinese home ownership statistics rose to 85% in 2010 and surpassed 90% in 2017. To have a better idea of the prevailing Chinese real estate situation, you can view our previous discussion regarding China’s real estate bubble and 9 other predictions that turned out to be wrong.
The United States is another major global real estate market that has long been subject to a housing affordability crisis. On May 4, CNBC reported that 66% of renters in the US feel hopeless about owning a home as median home prices have gone up by 33% since January 2020. Other financial milestones such as being debt-free, having a comfortable retirement, and owning a car were considered as priorities by these renters. Some of the least affordable metros for homebuyers in the US have been previously covered.
Other than the aforementioned low home ownership markets, a survey by HSBC revealed that the United Arab Emirates had only 26% of millennial homeowners in 2017. 45% of these millennials mentioned not saving enough for a deposit as a barrier to home ownership. Simultaneously, 70% of UAE millennials had overspent their budget on buying a house. However, a recent trend of tenants converting to homeowners has been witnessed in Dubai’s attractive real estate in 2023 and was forecasted to continue in 2024. Dubai’s real estate market has been resilient and tends to offer the confidence real estate investors seek. Furthermore, a growing economy also boasts the stability required to commit to home ownership. Policies by the Dubai Land Department for the protection of investor rights further make property ownership convenient. As reported by Deloitte, Dubai has witnessed growth in sales prices as well as average rents during 2023. Overall, the transaction volume in the market increased by 29% between 2022 and 2023.
With that being said, let’s analyze the home ownership situation in Europe. Austria has one of the lowest home ownership rates in Europe. Eurostat reported that in 2022, 69% of the EU population lived in a house they owned while 31% resorted to rented housing. While most people owned houses in countries including Romania, Slovakia, Croatia, and Hungary, there was a significant proportion of renters in Germany, Austria, and Denmark. In Germany, 53% of the population were tenants. At the same time, Austria and Denmark had 49% and 40% renters respectively.
Top Companies in the Global Real Estate Sector
Real estate companies in the aforementioned countries where the home ownership rate is not significantly high bring diverse opportunities to settle in desirable locations within the respective countries. Let’s take a look at what such companies including Vonovia SE (ETR:VNA), Aldar Properties PJSC (ADX:ALDAR), and LGI Homes, Inc. (NASDAQ:LGIH) have been up to. You can also view the largest real estate companies in the world.
Vonovia SE (ETR:VNA) is a leading residential real estate company in Germany. The company engages in creating livable neighborhoods and has provided homes to more than one million. Vonovia SE (ETR:VNA) has 485,000 apartments in Germany, 38,000 apartments in Sweden, and 20,000 apartments in Austria. The company reportedly completed more than 2,400 housing units during 2023 regardless of difficult conditions in the housing market such as strict rent regulation, high inflation and interest rates, and high construction costs.
Aldar Properties PJSC (ADX:ALDAR) is a dominant real estate developer in the UAE. On May 1, the company reported the launch of the first active living community in Dubai, Athlon. This community is Dubai’s first concept which has been designed for the everyday movement of its residents. Aldar Properties PJSC (ADX:ALDAR) has built this community in partnership with Dubai Holding. Athlon is situated beside Global Village and has green walkways and vibrant parks to offer. The community boasts more than 10 kilometers of tracks, trails, and loops. Prices start from AED 2.8 million.
LGI Homes, Inc. (NASDAQ:LGIH) is an American home construction company. The company operates in 21 states across the US. On May 8, LGI Homes, Inc. (NASDAQ:LGIH) announced the opening of its new community in the Modesto market. The community ‘Diamond Bar East’ is situated in the friendly town of Riverbank and is at a short distance of 15 minutes from Modesto. Residents can also access parks and local schools nearby. Since Riverbank is a family-friendly city, those who wish to settle with their families can resort to the community. Prices for the new homes at Diamond Bar East begin from the $470,000s.
Now that we have taken a look at the home ownership situation across the world, we can move to the 25 countries with the lowest home ownership rates.
Our Methodology:
In order to compile a list of the 25 countries with the lowest home ownership rates, we sourced data from Trading Economics. To expand our research and pool of countries, we sifted through multiple media reports related to our topic, primarily from national news agencies or established media companies. The countries on our list are arranged in descending order of their most recent home ownership rates.
25 Countries with the Lowest Home Ownership Rates
25. Netherlands
Home Ownership Rate: 70.6%
The home ownership rate in the Netherlands went up from 70.1% in 2021 to 70.6% in 2022. Despite the recent rise, the country has a relatively lower home ownership rate as compared to other countries.
24. Ireland
Home Ownership Rate: 70.4%
Ireland is another European country with a lower rate of home ownership. The country’s home ownership rate was 70.4% in 2022.
23. Cyprus
Home Ownership Rate: 69.6%
In 2022, the home ownership rate was recorded at 69.6% in Cyprus. Therefore, the country ranks among the 25 countries with the lowest home ownership rates.
22. Greece
Home Ownership Rate: 69.6%
Greece ranks as another country where relatively fewer people own their homes. Home ownership in the country was reported to be 69.6% in 2023.
21. Finland
Home Ownership Rate: 69.2%
As of 2023, Finland has a home ownership rate of 69.2%. Previously, this rate was 69.5% in 2022. This ranks the country 21st on our list.
20. Canada
Home Ownership Rate: 66.5%
66.5% of Canadians owned their home in 2021. This home ownership rate decreased from 66.8% in 2019 thereby ranking Canada among countries with low home ownership.
19. Australia
Home Ownership Rate: 66%
While home ownership in Australia reached an all-time high of 71.4% in 1966, it was recorded at 66% in 2020. Therefore, the home ownership rate is relatively low in the country.
18. United States
Home Ownership Rate: 65.7%
As of the fourth quarter of 2023, America’s home ownership rate is 65.7%. This rate slightly decreased from 66% in the third quarter of 2023.
17. United Kingdom
Home Ownership Rate: 65.2%
The rate of home ownership in the United Kingdom was last recorded at 65.2% in 2018. Hence, the country ranks 17th on our list.
16. Sweden
Home Ownership Rate: 64.9%
Sweden has one of the lowest home ownership rates. Home ownership in the country increased from 64.2% in 2022 to 64.9% in 2023.
15. New Zealand
Home Ownership Rate: 64.6%
The home ownership rate in New Zealand was 64.6% in 2018 while it averaged 68.08% from 1991 until 2018. This rate was at its all-time high of 73.8% in 1991.
14. France
Home Ownership Rate: 63.4%
France’s home ownership rate decreased from 64.7% in 2021 to 63.4% in 2022. This ranks the country 14th on our list of countries with the lowest rates of home ownership.
13. Israel
Home Ownership Rate: 62.7%
The 25 countries with the lowest home ownership rates rank Israel as well. The country recorded a home ownership rate of 62.7% in 2021.
12. Japan
Home Ownership Rate: 61.2%
The home ownership rate in Japan was at an all-time high of 61.7% in 2013 and a record low of 59.80% in 1993. 61.2% of Japanese owned their homes in 2018.
11. Kenya
Home Ownership Rate: 60.8%
The home ownership rate in Kenya is also relatively low. As reported by the 2019 Kenya Population and Housing Census, the home ownership rate in Kenya was 60.8%.
10. New Caledonia
Home Ownership Rate: 60.5%
New Caledonia’s home ownership reached a high of 62% in 2009 and a record low of 53% in 1983. The most recent home ownership rate in the country was recorded at 60.5% in 2019.
9. Denmark
Home Ownership Rate: 60%
As of 2023, Denmark has a home ownership rate of 60%. This rate was previously reported to be 59.6% in 2022 and saw an increase.
8. Turkey
Home Ownership Rate: 57.5%
Turkey’s home ownership rate experienced a slight decrease from 57.9% in 2020 to 57.5% in 2021. The country has one of the lowest home ownership rates among other countries.
7. South Korea
Home Ownership Rate: 56.2%
South Korea ranks 7th on our list of countries with the lowest home ownership rates. The country’s home ownership rate was 56.2% in 2022 and remained unchanged from 2021.
6. Hong Kong
Home Ownership Rate: 51.5%
The home ownership rate in Hong Kong was recorded at 51.5% in 2022. This rate averaged 46.93% from 1982 until 2022.
Click to continue reading and see 5 Countries with the Lowest Home Ownership Rates.
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Disclosure: None. 25 Countries with the Lowest Home Ownership Rates is originally published on Insider Monkey.