Theano Thiopoulou
The younger generations do not buy a house or an apartment and … necessarily do not get along well with home ownership, mainly due to income but also professional uncertainty. This is the conclusion of an ECB report, edited by Conzalo Paz-Pardo last week, which explains that young people in Europe are faced with high housing prices and low incomes, leaving many young couples unable or unwilling. to risk making such a big investment.
In southern Europe, in particular, home ownership rates at the age of 35 have fallen by more than 10 percentage points, compared to those born between 1965 and 1979 and those born in the 1980s. At the same time, young people need longer time to leave the parental home and live independently.
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In the report, the analyst attributes the changes in young people's attitudes to home ownership mainly to the fact that career careers are becoming increasingly rare, unemployment periods are longer and pay inequality has increased. “While the working income of high-income people has increased significantly over time in real terms, those with lower incomes have seen their real earnings remain stagnant or declining. As a result, they find it more difficult to buy a home. Why; There are almost no homes on the market below a certain minimum price, quality or size.
“Households that are too poor to have access to a mortgage for this minimum amount are excluded from the housing market,” the report said. The analyst notes in the report that the timing of fluctuations in housing prices and the economic cycle can leave a lasting mark on a generation. “Those born in the 1960s entered the housing market at a time when housing prices were cyclically low, which helped address other, negative forces affecting home ownership. For those born in the 1980s, the opposite was true, exacerbated by the impact of the 2008 crisis on their incomes. “
READ THE ENTIRE REPORT IN THE PUBLISHED LIBERTY PRESS
