Many people dream of owning a home, but few can afford it.
17 May 2022
Many dream of owning a home, but few can afford it
Bern, 24.03.2022 - 80% of people who want to become homeowners say they can't afford it. The reason? Prices are too high and wealth too low. They can't find a suitable property, and would therefore like to see more encouragement for home ownership. These are the findings of a study carried out by the School of Management and Law at Zurich University of Applied Sciences (ZHAW), in collaboration with the Federal Housing Office (FHO), the Swiss Landowners' Association, the Fédération romande immobilière and Raiffeisen Switzerland.
For this study, in the second half of 2021, ZHAW conducted individual interviews and a representative survey of around 1,000 people in German- and French-speaking Switzerland who have not yet purchased a property, but are considering a change of accommodation.
There are still avenues to explore
For many of those interviewed, owning a home is something only a privileged few can afford. In their view, if home ownership is unaffordable, the causes lie first and foremost with politicians and authorities, then with the construction and real estate sector, and financial service providers. Three quarters of those wishing to buy a home in the near or distant future would therefore like to see access to home ownership made available to a wider cross-section of the population.
Around half of those wishing to become homeowners would also like to receive support in terms of information on financing options or calculating the maximum bearable purchase price. Such offers already exist, but the authors of the study assume that they are not sufficiently exploited. The survey shows, for example, that less than a third of people actively looking for a property have installed a notification service on a real estate platform.
Home ownership, a generational issue
The study shows that the dream of home ownership is linked to a person's stage of life: 46% of those surveyed between the ages of 30 and 49 are currently actively looking for a home of their own. Among 18-29 year-olds, the figure is around a quarter, although a further 54% of this age group say they want to become homeowners in the longer term. By contrast, three-fifths of people aged 50-69 prefer to remain renters. This is undoubtedly due to life expectancy.
Financial motivations are secondary
Financial considerations are not the main reason for wanting to become a homeowner. Barely 20% of those questioned are considering such an acquisition primarily as an investment. For most of them, the most important thing is the stability and autonomy offered by home ownership: nine out of ten people currently looking for a home of their own would like to settle in for the long term, arrange their home as they see fit and not be dependent on a landlord.
The study is a contribution to the current debate on rising property prices, which are making home ownership more difficult.
Address for questions
- OFL Media and Communications, 058 463 49 95, media@bwo.admin.ch
- Holger Hohgardt, Institut für Wealth & Asset Management, ZHAW School of Management and Law, 058 934 40 34, holger.hohgardt@zhaw.ch
- Frederic Härvelid, Communication, ZHAW School of Management and Law, 058 934 51 21, frederic.haervelid@zhaw.ch
Author
Federal Housing Office
About Cerise Immobilier gérance et courtage, real estate agency in Villars-sur-Ollon
Cerise Immobilier gérance et courtage is a real estate agency located in Villars-sur-Ollon in the canton of Vaud, Switzerland. We offer services in sales, purchases, rentals, PPE management, property valuations and tax and legal advice. We cover the Chablais region of Vaud, including the communes of Ollon, Gryon, Bex, Aigle, Les Diablerêts, Chessel, Leysin, Lavey, Noville, Roche, Yvorne and Villeuneuve.
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