Millennials and Generation Z: Fear of borrowing pushes them to rent

Seven out of 10 millennials and Gen Zedders are so afraid of taking out a mortgage that they prefer to rent, according to a study that was presented at the 17th Real Estate & Construction Conference & Exhibition this week.

As was to be expected, the younger generations live by majority in flats, though 83% admitted they would rather live in a house.

The study into the housing needs of millennials and the Generation Z was carried out by IMR/University of Nicosia last March on a sample of 1,200 people. The aim of the study was to record the general views and conceptions of the real estate market, the current living standards, the views around purchasing a house, the market’s intentions and the parameters taken into account when buying property.

The younger generations have a lot to deal with, according to the study’s findings, what with the price of residential units shooting up by 84%, construction materials rising by 45% and demand for apartments increasing by 23%.

Of those asked, 69% lived in a house and 31% in an apartment. Almost eight in 10 of those living in a house said it was self-owned (79%).

According to Christina Kokkalou, Managing Director of IMR/University of Nicosia, who presented the study, 65% of millennials said they intended to purchase a house for their permanent residence.

Asked how they acquired the house they are currently living in, 26% of respondents said it belonged to their parents, while 24% said they owned the land and built on it. The rest said they either bought a ready-built house from a land developer or inherited land from their parents and developed it.

As regards financing their primary residence, the majority of those asked said they would seek to take out a loan from a credit institution, followed by those who will use their savings. The other two most popular options were with the help of third parties and through state sponsorships.

Asked “Do you believe that it is more financially viable to rent a house rather than own it?”, the majority of millennials and gen zedders (68%) said no, though a significant percentage of 32% said yes.

(Source: InBusinessNews)