Germans generally prefer to rent a house rather than buy it. But why? Let’s talk!
Unfortunately, many people have to pay rent for their basic needs, accommodation. This is a major problem in many countries, including Germany. However, there are other factors, such as cultural preferences and demand & supply problems in the country. In this guide, which can be also considered as a review, we are going to address some of these problems and their underlying causes. In addition to renting trends within the country, we will also discuss their renting decisions abroad. If you would like to learn more about why Germans rent rather than buying a house, this article is for you. So, let’s stop wasting more time and dive into our topic.
Cultural preferences play a major role
Cultural preferences affect every decision of any community, and Germans are not an exception. We should not forget that Germany took part in both World Wars and the vast majority of their lands were in the middle of the battlefield. In those times, your houses may be invaded or destroyed overnight. Therefore, it was not logical to buy a house but to rent it. Although this is not a problem anymore in our modern world, there is a saying that old habits do not die easily. Of course, this does not affect the new generations, but older generations tend to rent their homes rather than buying them.
This is a cultural fact that is taught by their parents. However, just like most cultural preferences, these habits are constantly evolving, and it already started to lose their effect. A few generations later, we believe that this will not be a problem at all.
Demand & supply problems in modern Germany
One of the biggest challenges that every modern country faces is the rapidly increasing population. Germany is one of the leading countries in the world and it is also one of the most favorite destinations for immigrants. As a result, population increase is a major concern in the country. As more and more families settle in Germany, they and their kids rent or buy houses in the country.
This directly affects the demand and supply problems in the long run. This is the basic rule of any economy. If the demand increases, supplies decrease and therefore the prices go up. As a result of this fact, new generations have a challenging time saving enough funds to buy a house. Since they have to meet their accommodation needs and they are not able to afford a house, they prefer renting. In summary, new generations that are not affected by the cultural tendencies at all are not able to buy houses even they desire.
Renting is more sustainable in the long-term
This section is closely related to the previous section. After all, if you cannot afford to buy a house, you will have two options left. Either you are going to keep living with your parents or rent a house. If you need to move to another city for educational or career purposes, keeping living together with your parents may not be an option. Moreover, you may not be able to live with your parents once you marry or engage.
As a result, there will be only one option left, which will be renting a house. This is a more sustainable choice in terms of your budget and mood.
Why do Germans prefer renting rather than buying a house abroad?
If we need to discuss why Germans prefer renting rather than buying a house abroad, it is safe to say that this decision is not unique to Germans. Many people tend to rent a house abroad rather than investing their money in buying them. This is a logical decision that helps you to keep a portion of your freedom at your hands. In this way, you can always move whenever you want with minimum loss or cost.
Moreover, currency differences are one of the main reasons why people prefer renting houses abroad rather than buying houses.