Just a few years ago, owning your own home was considered a firmly anchored dream for many Germans. Today a different picture emerges. Rising prices, uncertain future prospects and a changing view of life have ensured that young adults are increasingly saving their money for other goals.
From owning your own home to retirement planning
A current evaluation makes it clear how much the savings goals have shifted. According to the Association of Private Building Societies, around 60 percent of people in Germany are now saving for retirement. However, only 33 percent put money aside to buy real estate. ZEIT points out that consumption and capital investments have now become even more important than building home ownership. What is particularly striking is the look at the younger generation: in the 14 to 29 year old age group, 65 percent regularly put something aside, but here too, making provisions for old age comes far ahead of the desire to have one’s own four walls.
Reasons for the decline
The change has tangible causes. Real estate is more expensive than ever, loans cost significantly more than a few years ago, and the ongoing cost of living is also rising noticeably. The Handelsblatt emphasizes that there is a lack of government funding that would make the dream of owning your own home more tangible. Christian König from the Association of Private Building Societies even speaks to ZEIT of a “socio-political alarm signal.” If more and more people give up on buying a house or apartment, it is not because the desire has disappeared, but because reality can no longer keep up.
Generation Z
Young adults in particular have lost faith in their own four walls. Moment.at reports that two thirds of Generation Z do not expect to ever purchase property. Buying real estate has long since become out of reach for many. Classic ideas of advancement are replaced by insecurity, combined with the search for other ways to secure oneself and lead a fulfilling life. This attitude also shapes savings behavior: instead of bricks and mortar, the focus is on long-term security and flexibility.
Experiences instead of bricks
At the same time, desires are shifting. According to the AXA Priority Report, a growing proportion of the population prefers to save for vacations and travel. Aviation.direct adds that young people in particular are increasing their travel budgets and preferring experiences to possessions. Shopping and the purchase of consumer goods, on the other hand, are losing their appeal. International studies, for example by the CBI Institute, also indicate that this development is not a purely German phenomenon, but reflects a broader movement: experiences count more than property.
Editorial team finanzen.net