“The aspiration to own a home is very strongly rooted among Lithuanian residents. Young people entering their first years of independent living already claim that owning their own home is very important to them, and this desire increases with age. If regarding 3 out of 4 young people in the 18-20 age group think it is important to have their own home, then among young people aged 27-29, 95 percent say so,” Justina Bagdanavičiūtė, Head of Financial Literacy at Swedbank, comments on the data.
According to her, young people not only dream, but also take action. Swedbank’s home loan data shows that young people aged 18-22 take out their first home loans.
Young people do not lag behind the elders
“Between the ages of 18-22 the share of young people with a home loan is not high, but almost every tenth home loan recipient is aged 22-25. This confirms the strong need young people feel to own their own home, and when the opportunity arises, they purchase real estate,” says J. Bagdanavičiūtė.
22-25 year olds accounted for 8% last year. all beneficiaries of Swedbank housing loans. Most housing loans were issued to people aged 26-30 and 31-35: they accounted for 29 and 28 percent, respectively. of all home loan recipients.
It is interesting that Lithuania stands out from other Baltic countries in terms of housing loans issued to people aged 26-30. In Latvia, Swedbank home loan recipients of this age group last year accounted for 17%, and in Estonia – 19%. According to J. Bagdanavičiūtė, one of the more obvious reasons for this is the different state housing support systems. In Lithuania, unlike in Latvia or Estonia, a significant part of support for the purchase of the first home is focused specifically on young families.
Choosing cheaper housing
The survey data shows that the most important factor when choosing a home for people aged 18-29 is its price (85%).
Swedbank’s housing loan data shows that young people purchase cheaper housing than older residents. This is influenced by somewhat smaller financial opportunities and somewhat different housing needs. Young people more often choose apartments with a smaller area, less often – housing with a larger area or individual houses. So if the average home loan in our bank is 100 thousand. euros, that is, in the group of 18-30-year-old customers, it is even a quarter lower – 76 thousand. euros”, observes J. Bagdanavičiūtė.
It is true, as Swedbank’s data show, that housing purchased by young people in Lithuania is not the cheapest in the Baltic countries. 18-30 years old in Lithuania. A square meter of real estate purchased in the age group costs 1.4 thousand on average. EUR, in Latvia – 1.1 thousand. euros, and in Estonia, the average price of housing purchased by young people reaches 2.1 thousand per square meter. euros.
The most important thing is the shopping center
As for infrastructure requirements, for the most part – as much as 73 percent. – of survey participants, when choosing housing, the most important thing is to have a shopping center nearby. This infrastructure is more often indicated by residents of large cities and district centers as the most important.
In second place in terms of importance is a public transport station and infrastructure to ensure convenient transportation – this is significant at 54 percent. survey participants. Convenient transportation infrastructure is especially important for residents of big cities aged 27-29.
Green areas near the house are important for 45 percent, kindergarten or school – 43 percent, polyclinic – 32 percent. of those interviewed. With age and emerging family obligations, the aforementioned infrastructure elements become more relevant than they are among 18-22 year olds.
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2024-07-09 02:30:20
