Struggles of Young People to buy Property
Access to property ownership has been a struggle for the past years, and the issue does not seem to be getting any better. Young people are finding it difficult to own property, requiring significant amounts of down payments and loans, leading to large commitments for a number of years. Combine the existing issues surrounding the ownership of property and current inflationary pressures, many believe that the situation can become even worse, with costs sky rocketing.
A paper has been recently published by the Housing Authority emphasising that young people are being priced out from buying property. As time progresses, even certain areas that were deemed as cheaper are now becoming less accessible to young home property buyers. The paper prepared portrays a grim picture about the housing market in Malta. In its concluding statement, it is being said that housing, irrespective of whether through renting or purchase is an unrealistic prospect for young people who do not have government or family support. It is also a difficult prospect for those who are not married or do not cohabitate. One of the few options is seeking properties in Gozo.
This speaks volumes and sheds light on the reason why so many young Maltese people leave their parents’ home considerably late. Maltese are amongst the oldest who leave their parents’ homes when compared to others in the different European Union countries. Based on 2020 data, the average age of those leaving their homes is thirty, which is about four years older than the European Union average.
A young couple with average income can find a number of opportunities if the rental route is being sought. Those earning below average income might struggle to find suitable rental options. Couples with minimum salaries or an individual alone with average income will encounter far less options. Young single people with minimum income may not have any option but to seek a room within a shared unit. Even if they go for this option, the remaining disposable income would be quite low.
The paper makes reference to the fact that the issue of access to property is not solely related to Malta. There are several countries and cities around the world where access to property is difficult. What Malta does not provide however when compared to these larger countries, is the possibility of finding significantly cheaper property in the outskirts.
What do you make about the property situation in Malta? What can be done to have this resolved and create better opportunities for younger people seeking their first home? Let us know your thoughts in the comments section below.