Owning versus Renting a Home—Prospects for Generation Z

Abstract

The Sustainable Development Goals (SDG) include sustainable cities and communities. The availability of housing for young people is a contemporary global problem, and the severity of housing problems for young people in many countries is widely discussed and raises important policy questions. Generation Z, described as digital, critical, adventurous, open-minded and, above all, mobile people, is now entering adulthood. The study attempted to identify the housing preferences of young people to determine whether they prefer renting a flat or owning one. Although generation Z differs from older generations in many respects, their perception of the housing issue does not differ significantly from the attitudes presented by older generations. The dominant model of the housing system in Poland, the non-commodified-familial model, which prefers ownership over renting, is also shared by the youngest generation. Hence, the conclusion addressed to the public authorities and the financing system is to enable the expansion of the credit offer supported by a long-term savings plan aimed at young people. Renting as an alternative way of securing housing needs is also perceived positively, with nearly 80% of respondents stating that they would be able to live in rented accommodation, mainly due to greater mobility, rising property prices and reluctance to take out a long-term loan. Hence, we suggest the need to support institutional renting along the lines of other countries with similar housing systems.