The desire of young people to buy a house fell last year for the first time in a decade. In 2024, 52 percent of young people between 25 and 34 years old wanted to purchase their own home, while in a previous study that was still 58 percent. It is the first decline since 2012.
This is reported by Rabobank, which suspects that this is because many young people have simply given up hope. They often have incomes with which buying a house is hardly a realistic option.
For example, the bank reports that in 2023 only one in three homes sold was affordable with an average income. In 2011 this was still two in three.
Especially young couples with a joint income of less than twice the median (89,000 euros gross per year) give up. “People adjust their housing wishes to the possibilities they think they have,” explains Rabobank economist Carola de Groot.
“Due to the rapid house price increases and the tight housing market, it is conceivable that house hunters no longer expect that buying a home is a possibility. And ultimately, they abandon their desire to buy.”
Also other young people drop out
Not only is the group between 25 and 34 years old becoming more discouraged, but a decrease is also seen in young people up to 25 years old. Of that group, only 27 percent want to buy a house, whereas in the previous study three years ago that was still 34 percent.
Older young people between 35 and 44 years old who do not have a home also seem to give up more often. For example, 48 percent hope for a home, where that was still 52 percent three years earlier.
The cause of the negative tenor is that house prices have risen so sharply that wage increases could not keep up with that trend. As a result, owner-occupied homes have become increasingly unaffordable for starters.
The Rabobank study also shows that home ownership among under-45s has fallen in recent years. In 2023, about 45 percent of them owned a home, ten years earlier that was still more than 50 percent.
Young people who were able to strike a blow on the housing market in the last two years earned above average. On average, they had an income of almost 88,000 euros gross per household.