Housing costs delay life plans for two in three

High housing costs are making people aged 25 to 45 put off moving out or starting a family, according to a study published on 15 September. In the Balearic Islands, 54% of those surveyed live in a home they own, while 14% live with family. The first EAE Business School Housing Effort Index found that 65.6% had delayed important personal decisions because of housing costs.

Two in three respondents said those costs were harming their emotional wellbeing. The effect was particularly marked among people who rent.

Buying without help feels out of reach

Some 75.3% said buying a home without family help was practically impossible. A further 71.6% saw inheritance as one of the few realistic routes into ownership.

Even homeowners with mortgages doubt they could get on the ladder now. Of that group, 66% said they would probably be unable to afford the home they live in if they had to buy it at today’s prices.

Ownership is lower among younger adults. It stands at 38.5% for those aged 25 to 34, compared with 62.2% among 35-to-45-year-olds. For people under 35, renting accounts for 41.4% of living arrangements as they move into their own home.

Rent makes saving harder

Renting an entire flat costs an average of 962 euros a month, against 778 euros for a mortgage — a gap of 184 euros. The report calls this the ‘impossible savings trap’: people rent because they lack the savings to buy, but high rent then makes it harder to build the deposit they need.

Living close to work is considered a luxury by 82.1% of those surveyed. And 22.5% said they had turned down a job offer because housing where the post was based was too expensive.

Topics: Housing · Social affairs · Politics · Economy

Source: Europa Press / Mallorca.com