Germans are saving less and less for home ownership. This is also related to the rise in prices on the real estate markets.
Dhe Germans are saving less and less for home ownership. As can be seen from the current summer survey by the Association of Private Building Societies, 29 percent of the 2,000 German citizens surveyed stated that they had their own house or apartment as a reason to save. In the spring it was 35 percent. The association announced that the current value was the lowest in 20 years.
“Mini construction interest on the one hand and mini savings interest on the other hand evidently entice many people willing to build and buy into the assumption that they can save their savings and put everything on debt,” was the statement by Bernd Hertweck, Chairman of the Board of the Association of Private Building Societies and the Wüstenrot Bausparkasse. In the spring of 2018, the association classified a survey value of 37 percent for home ownership as the most important savings motive as worrying, because this value had already represented an all-time low at the time.
Hertweck’s predecessor at the head of the association, Andreas J. Zehnder, had referred to another cause: the rise in prices on the real estate markets in the metropolitan areas. Affordable living space has become even more scarce since then, so that the homes and apartments that are no longer affordable for many average earners in large cities are a reason to save for other things instead.
In the survey, 53 percent of German citizens named old-age provision as a savings motive and 51 percent named consumption. Hertweck warns of the mistake that saving is no longer worthwhile because there is no longer any interest for it: “Because money that is not put aside is otherwise not there when you need it.”