Switzerland and Germany: High Renters vs. Balkan Homeownership Trends

Switzerland and Germany have high tenancy rates, with over half of their populations renting homes. In contrast, the Balkan countries show higher homeownership rates, but many homes there are overcrowded.

The housing crisis is becoming a bigger issue across Europe, marked by rental shortages and rising prices. About 70% of EU residents own their homes, while 30% rent. Roughly 17% of the EU population lives in overcrowded conditions.

The housing situation varies widely in Europe, with some countries seeing a stark divide between homeowners and renters. In 2022, more than 90% of people in eight out of 36 European countries owned their homes, according to Eurostat.

Renters in Germany and Switzerland

In Germany, the percentage of renters surpassed 50% in 2022, a unique situation among EU countries. Switzerland had 57.7% of its population renting, the highest in the European Free Trade Association.

Homeownership in the Balkans

Countries like North Macedonia, Albania, and Romania have homeownership rates above 95%. Homeownership is generally higher in Balkan countries compared to Austria, Turkey, Denmark, France, Sweden, and the UK, which fall below the EU average of 69.1%. Among the EU’s biggest countries, Spain and Italy lead with three out of four residents owning their homes.

Policies for Affordable Housing

European nations have adopted various measures to provide affordable housing. These include housing allowances and regulations. On average, social housing makes up 8% of the total housing stock in the EU, according to the OECD. The Netherlands, Austria, and Denmark have over 20% social housing. In contrast, Germany has only 2.7%, and Switzerland has 8%.

Housing Quality and Overcrowding

The quality of housing is essential. Overcrowded homes can harm health, especially for children. The EU average rooms per person in 2022 stood at 1.6, varying from 2.3 in Malta to 1.1 in Poland, Romania, and Slovakia.

Despite high ownership in the Balkans, overcrowding remains a challenge. In Albania, Montenegro, and Serbia, at least half the population lives in overcrowded conditions. The EU’s overcrowding rate is 16.8%. The highest rates are seen in Latvia (41.7%), Romania (40.5%), and Bulgaria (36.2%).

Push for Affordable Housing

In January 2024, a group of 100 housing providers and policymakers gathered in the European Parliament. Led by Housing Europe, they proposed three steps to ensure affordable housing in the EU:

1. Embrace a new housing model.
2. Support fair energy transitions.
3. Address housing exclusion causes.

The manifesto advocates for public, cooperative, and social housing as crucial in national housing strategies.