63% of Stuttgart tenants dream of owning property – study reveals news!

63% of Stuttgart tenants dream of owning property – study reveals news!

More and more tenants in Germany dream of owning their own home. According to a recent study presented by Frank Brettschneider, professor at the University of Hohenheim, as part of the home ownership congress “Fact Check Home Ownership”, 63 percent of tenants in the country stated that they would like to own their own home. This study not only examines satisfaction among tenants, but also among owners and discusses the challenges of the current housing market as well as political measures to promote home ownership.

The study shows relevant trends in the housing market and how they affect the quality of life. Living space, infrastructure and general living conditions are seen as crucial factors in the satisfaction of German citizens. In particular, the role of thoughts of divorce is addressed in the study, as such life events can often also influence the living situation. The wishes of future owners and the possibilities for building ownership in the residential sector are also discussed.

Satisfaction and living conditions

A study by the German Institute for Economic Research (DIW) shows that general satisfaction with household income has increased in particular since 2011. This has led to higher life satisfaction among Germans, with more than a quarter of this increase attributable to improvements in income. Despite a general increase in satisfaction with apartments - the joy of having one's own four walls has increased somewhat - their influence on general life satisfaction remains low. According to the DIW study, satisfaction with your apartment only contributes four percent to general life satisfaction.

Interestingly, life satisfaction varies greatly between renters and owners. Owners are systematically more satisfied with their living situation. These differences are particularly pronounced in lower income groups, where satisfaction with housing remains relatively low despite increased general satisfaction. Factors such as housing costs, apartment size and features play a crucial role. A detailed survey as part of the Socio-Economic Panel (SOEP) shows that rental prices and their control have a significant influence on the living situation.

Current developments on the housing market

Housing market challenges are also compounded by geopolitical factors, such as the Russian attack on Ukraine. This situation has led to increased construction costs and interest rates, which makes building new housing even more difficult. On the positive side, however, construction interest rates have fallen since the end of 2023 and prices for new buildings are gradually stabilizing. In the fourth quarter of 2024, prices for new residential buildings rose by 3.1 percent compared to the same quarter of the previous year.

In 2023, around 49,591 social housing units were subsidized in Germany, which corresponds to an increase of 21 percent compared to the previous year. This increase is linked to proper planning and support from the federal government. Despite the challenges, housing remains the largest sector in construction, accounting for 57 percent of the total, providing stability that is important given increasingly tight markets.

The ownership rate in Germany was 43.7 percent in 2022, although there are significant regional differences: in large cities it is often less than 16 percent, while in rural areas it can be over 70 percent. This shows the urgent need for initiatives to promote home ownership, especially in urban areas.

The housing situation in Germany is therefore characterized by an interplay of satisfaction and basic skills, which in turn are influenced by political measures, economic circumstances and individual living conditions. The study results illustrate the urgent need for action to improve housing for all population groups and to overcome social inequalities.

The source data for this article includes, among others, the comprehensive studies by Stuttgart News as well as the analyzes of the DIW and the Federal Ministry of Housing.