Study: Number of homeowners in Saxony on the rise

According to a new study, the proportion of homeowners in Saxony has risen slightly in contrast to the nationwide trend - but still remains at a low level. The number of owners there increased by just over 5 percent between 2011 and 2022, according to a recent analysis by the Pestel Institute on behalf of the Bundesverband Deutscher Baustoff-Fachhandel.

In 2022, Saxony had 721,764 owner-occupied households, putting it well behind North Rhine-Westphalia, the frontrunner with more than 3.5 million owner-occupied households in the same year. Owner-occupied households make up only 34 percent of all households in Saxony. According to the Pestel Institute, there are huge differences within Germany: Saarland is at the top with 58.6% owner-occupied households, ahead of Rhineland-Palatinate (53.5%). Berlin is in last place with 15.8%, behind Hamburg (21.2%).

Cities and rural regions: Leipzig brings up the rear

A comparison of the regions also reveals very different ratios: Leipzig brings up the rear with an ownership rate of just over 13 percent. At the top with over 72 percent is the district of Südwestpfalz in Rhineland-Palatinate, which borders France.

In general, the home ownership rate in cities nationwide is less than half as high as in rural regions at 25 percent: The average home ownership rate in rural districts is 52.2 percent, according to the Pestel Institute. This is also reflected in Saxony: compared to Leipzig, which brings up the rear, the ownership rate in the district of Bautzen is around 48.2 percent.

Renters remain the majority

The number of renters in Saxony remained almost the same during the period under review and only fell slightly. In 2022, the institute counted just over 1.4 million tenant households - that is 66 percent of all households.

Reproach to the federal government: chance of home ownership "zero"

According to the study, Germany ranks second to last among 19 European countries - only Switzerland has even fewer homeowners in proportion. Chief economist Matthias Günther blamed "political failure" for the trend reversal: "For average earners, the chance of owning a home today is zero." The study, which was published at the "Bau" trade fair in Munich, was commissioned by the German Building Materials Trade Association (BDB).

Austria outperforms Germany

Slovakia is in first place among the 19 European countries, where a good 90 percent of households live in their own house or condominium, according to the study. As far as German-speaking countries are concerned, Austria comes out on top: There, the home ownership rate is at least well over half.

Rent increases contribute to poverty in old age

The authors sharply criticize the development, not least because the constantly rising rents in cities contribute to poverty in old age.rent," said Matthias Günther, head of the study, referring to older tenants who can no longer afford their homes and therefore have to move.

In a model calculation, the institute compares two households with identical average incomes from one full-time and one part-time job and an identical 100-square-metre apartment. On reaching retirement age, an owner-occupied household would be left with a net income of 2,200 euros after deducting all costs, while a tenant-occupied household would only have 1,450 euros. "Renting forces people to tighten their belts considerably in old age," said Günther.

Demand: Federal government should promote the purchase of property

The Federal Building Materials Association, as the client, called for reliable federal funding for the purchase of one's own residential property, as did the Pestel Institute. "So far, the Federal Ministry of Construction has unerringly bypassed the housing market and thus people's lives," criticized BDB President Katharina Metzger.

The German data from the Pestel Institute comes from the 2022 microcensus. The surveys by real estate associations, banks and credit brokers indicate that the situation for both tenants and prospective buyers has worsened and not improved over the past two years.