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.