Home Ownership Percentages

It is almost summer and guess what people love buying homes during this season. Do you think many people dream of owning a home or do you think those folks who rent are just as happy as homeowners? In the US we always get bombarded with stats regarding the housing industry. After the recent bubble popped, the media has had a love affair with all things housing. Now in this crazy housing and equity market space, where negative or positive housing news influences equities in a big way, it is important to fully understand housing better. Why would an economy be so interdependent on home ownership percentages.

If a thousand Joe Schmoo’s buy houses then guess what, stocks will go up on the positive housing report. I want to provide you the home ownership percentages in different countries and compare it to the US. How will this information benefit you in any way? Maybe you will decide if you are a lifetime renter or maybe it does not fit in with your lifestyle. It can also show how other individuals view homeownership in different countries. There are arguments supporting both those who rent and those who are homeowners. Where do you fall in the argument?

Home Ownership Percentages

Romania – 96.6%

Singapore – 87 – 90.5%

China -90%

India – 86.6%

Italy – 80%

Brazil -74.4%

United Kingdom -66.7%

United States – 65.2%

Turkey – 60%

France – 63.7%

Turkey – 60%

Germany -53.3%

Resource: Here

Lets delve a bit further to discuss housing. The research to determine, if the higher percentage countries have happier citizens compared to the lower percentage countries could not be found with accuracy. What will be funny is if the people renting turn out to be happier than the people who own? I feel the countries with the lower home ownership figures have on average really high home prices in relation to average incomes.

Another theory that I hear all the time is that in more developed countries like United Kingdom and United States, the income inequality gap is affecting middle class people to not be able to afford owning a home. The rich investor is silently buying up homes to rent to middle class families. A good duplex is being bought in less than 3 days after a listing in my area of NJ. Now if you analyze this, a middle class family can buy this duplex and get assistance with paying the mortgage with the rent from the other unit, but this is not possible if wealthy investors are gobbling up the properties. They immediately pay full asking, and it is such a fast process that many middle class people who don’t have a high quality realtor end up missing out.

When I look at the numbers from the list above it tells me that the countries that are considered developed for a longer period of time have a lower ownership percentage. Why is this so if we correlate being a developed country with a high income per capita?(Citizens make more money)  This correlation is very opposite in thinking, because developed countries should have a higher ownership percentage for its citizens. My theory is that in developed countries people are so indebted to the services and the financial system (Debt) coupled with higher home prices, and it is developing counterproductive results. (Most countries are either in the -Developed versus Developing categories)

By looking at all the research around this topic it seems like the best bang for your dollars would be to live in Singapore, it has a high home ownership percentage, is considered a developed country, the citizens have a high income, low unemployment rate, and you can eat great Asian food all year long.  The one downfall I read is the income inequality is a big issue just like here in America. Where would you live if you could choose from the list above?

Comment if you see home ownership percentages going up or going down in your area?

Rich Uncle EL