More than just finances go into the decision of whether to buy a home. Factors like tradition, culture, governmental policies and lending policies arguably play a more significant role.
According to the Iconoculture Values and Lifestyle Survey (September 2011), China, India and Russia have the highest home ownership rate among the 17 countries surveyed. Germany, Turkey and France have the lowest.
When it comes to renting or leasing a home, it’s not surprising that China and Russia have the lowest rate — 11%. Also low are Brazil, Mexico and India.
WHAT THIS MEANS TO BUSINESS
A sample of the comparatively better-off online population in China, India and Russia contributes to their high homeownership rates. But considering the low numbers in many wealthier markets, income is not always an indicator of the propensity of a population to buy rather than rent.
In Asia, the concept of family is closely connected with home ownership. In China, particularly, many people hold the view that no house means no marriage.
Russia’s homeownership rate is high because before glasnost, the Soviet state gave citizens housing; after the breakup of the USSR, the majority privatized their homes.
Germany has a combination of factors that lead to one of the lowest home ownership rates among developed countries: aversion to risk, postwar housing shortage, prevalence of subsidized rents and stringent mortgage requirements.