How Germany lives

The dream home study was developed in cooperation with Interhyp AG.

Large living dream study 2019: Realities change the dreams

Interhyp AG, Germany's largest broker of residential mortgages, has once again presented a comprehensive survey on the housing situation and real estate dreams of Germans in the form of the Wohntraumstudie 2019 (Dream Home Study 2019). One key finding is that a beautiful home is one of the most important things in the lives of Germans, along with good health. However, the number of those who would like to own their own home has decreased compared to the previous year. Whereas 76 percent of renters in 2018 said they would like to own their own home, this figure has dropped to just 66 percent in 2019. "Realities in the real estate market are unsettling some prospective homeowners. Nevertheless, the desire for home ownership is still very high," explains Mirjam Mohr, Member of the Management Board of Interhyp AG. Each tenth German plans up-to-date a real estate purchase. What drives prospective real estate buyers and how they perceive the market situation was investigated by Interhyp in a large representative survey of 2,600 Germans. This year, for the first time, the study, which has been conducted since 2011, also takes a detailed look at the decision-making process when looking for real estate.

One in four decides on the basis of gut instinct

As the current survey shows, for many Germans the home is an emotional as well as highly topical issue. "Individual factors such as the desire for security, satisfaction and happiness are coming up against external factors such as rising rents and increasing purchase prices. In addition, the European Central Bank's low interest rate policy is acting as a catalyst. With lending rates below one percent, many people find buying more attractive than renting," explains Mohr. When asked what speaks in favor of buying real estate in view of the current market situation, 81 percent cited the currently favorable interest rates. Although home ownership is also seen in 2019 as an elementary building block of wealth creation and retirement provision and as a decision for life, 23 percent of people decided on their property on gut instinct. 17 percent describe their real estate purchase as a stroke of luck.

Interest rates, purchase prices, rents: Market situation provides reasons to buy

According to the in-depth interviews conducted in the course of the survey, many people find the search and purchase process in the current market situation primarily exciting, but also stressful in some cases. Prospective real estate buyers who have searched for a property to buy or rent in the past two years perceived it as more stressful than real estate seekers in earlier years (53 percent compared to 39 percent on average). "There are very high hopes associated with real estate ownership, but also great disappointments. It ranges from joyful happiness to tears," Mohr said. Renters looking for property experience the situation as anxious to feverish. Many have the feeling to want to create property now absolutely. For the purchase speaks according to the opinion of the asked ones up-to-date apart from the interest particularly that the demand for real estates is high (87 per cent) and the purchase prices in their area continue to rise (84 per cent). They obviously do not want to buy at even higher prices or fear that they will not get their chance. Many are also not sure whether their pensions will be sufficient in old age and promise themselves security in old age from real estate (88 percent). Big city dwellers are more worried that rents could rise (82 percent) than people in smaller and medium-sized towns (73 percent). In rural areas, this concern is not quite as widespread (59 percent). Among the aspects that fundamentally speak in favor of a purchase, most people include the freedom to rent, more scope for design and independence, and security for old age.

The country remains a place of longing

Two-thirds of respondents currently live in a city. However, the desired location is more often rural and the Germans' dream home remains the detached single-family house (63 percent). However, the countryside remains a place of longing in many cases. People tend to look for homes in the city. In line with this, access to public transportation and travel time to work are particularly frequently mentioned aspects, both in terms of housing dreams and current satisfaction.

38 percent want to buy but cannot

One in ten Germans would like to buy an apartment or house soon, according to the Wohntraumstudie. 9 percent of tenants have already attempted to buy - but have not yet found what they are looking for. 38 percent would like to invest in their own concrete gold, but do not have the financial means. Tenants between the ages of 18 and 39 in particular would like to buy. Of the 18 to 29-year-olds, only 15 percent said they would prefer to continue renting. Those who have bought are happy, according to the Wohntraumstudie: 92 percent of owners are satisfied with their decision to buy property.

About the Interhyp Dream Home Study

Interhyp AG has been conducting the dream home study since 2011. For the new edition in 2019, Interhyp, together with the Rheingold institute, expanded the scope of the study to include a close look at decision-making processes and successfully continued the two-stage study design that had been introduced. The first step was 20 qualitative psychological in-depth interviews. In the second step, the most important findings from the interviews were converted into quantitative questionnaires and a total of more than 2,600 people were surveyed in a nationwide and representative online panel in April and May. This made it possible to capture all the respondents' needs and wishes relating to their own homes.