Young Lithuanian attitudes towards their own housing are changing: is it a consequence of Western thinking or financial difficulties?

One third lives with parents

Luminor Bank conducted a survey of young people aged 20-30 about housing in the Baltic countries. Although the survey was conducted in three countries, according to Andrius Kvakšis, Director of Mortgage Credit Product at Luminor Bank, who presented the survey, the data analysis focused on the results in Lithuania.

“During the survey, we wanted to confirm or refute the hypothesis that modern youth is completely different from the old. To check if he is really so mobile, independent, not attached to the place, to things and less grateful for his own home ”, the expert presents the purpose of the survey.

The survey first asked young people where they live now. Regarding the responses, according to A. Kvakšis, three trends can be seen: a third of the respondents live in a rented apartment, another third already live in their own house, in an apartment owned or owned by their partners, and another a third still live with their parents. Continuing with the survey, the bank focused mainly on those young people who live with their parents.

“The situation is similar in all three countries, but also slightly different. About 70 percent. Of those surveyed answered that they do not live with their parents, they live elsewhere, and about 30 percent. Continue to live with their parents. Then we divide this sample: what kind of people still live with their parents. It is interesting to note that when dividing this segment by gender, 20% of the parents live with it. Women and more than 30 percent. Men. I cannot explain why what is so, “says the mortgage expert.

When analyzing the survey data, the specialists noted that the higher the education of the respondents, the fewer people live with their parents, become more independent and move into their homes.

“If we talk about income, a clear correlation is also visible. The higher the income, the fewer people choose to live with their parents. There is also a quite interesting distribution by cities. In large cities, there are fewer young people living with their parents , compared to 50% in some cases and 50% in the regions. Here we should already look for the reasons why this is the case “, says A. Kvakšys.

The interviewee explains that it can be assumed that in smaller cities young people are more likely to live with their parents because the latter have their own homes. In this case, the young man has his own separate space, there is no friction between parents and children. The situation is different in large cities: here the vast majority of the population lives in apartment buildings, so there is very little room in the apartment for an independent young man and his parents.

It should also be noted that large cities attract many people and regions, which separates young people from their parents ”, adds the expert.

The interviewee goes on to say that during the survey respondents were asked which claims they would confirm and which they would refute. The dominant claim in the survey was that real estate is primarily an investment. Its price is also expected to rise.

And, despite various turmoil, crisis, when house prices are falling and the incessant rise in prices in recent years, now in quarantine, the expectation remains the same as real estate – an investment. The other thing that dominates is that you would pay the bank better than you would pay the rent. The rental prices are not low, they are often higher than the mortgage payment, so young people say that today a mortgage is cheaper and is an investment, ”says A. Kvakšys.

More than half of those surveyed plan to buy a home

According to A. Kvakšis, during the survey it was clear that only 4 percent. respondents would prefer to stay in a rented home without buying their own. According to the interlocutor, this shows that Lithuanians are different from citizens of Western Europe, for whom renting a home is common and attractive even in old age.

“Rent is a common thing for Western Europeans anyway, and not just for young people, because housing is chosen to be close to work. And our people prioritize comfort where they feel safe and at home. For our young people, the house is a home, not a place where you just sleep again ”, says the expert.

He goes on to say that when it comes to the future plans of Lithuanian youth, the survey results show that young people plan to buy their own home in the next 5 years. There were more than half of those surveyed.

“It has to do with starting a family and with a sense of security and independence. On the other hand, about 30 percent. people responded that they have no such plans or other plans. It is an interesting trend that young people are still mobile enough, looking for themselves. On the other hand, this is probably normal for such an age group ”, considers A. Kvakšys.

Continuing with the review of the survey results, the expert mentions another fact: up to 12 percent. Respondents in Lithuania answered that they plan to buy their house next year: “It is optimistic, because buying a house is an investment, you need to have your initial contribution, if you plan to do it with your own money, you need to have money to install that house. We are pleased that young Lithuanians are sufficiently integrated into the labor market ”.

Buy apartments for a shorter period

The survey also examined how young people choose real estate, what type of real estate is attractive to them. Analyzing the results, according to A. Kvakšis, it can be seen that there is a clear Lithuanian trend: we want to live in our own house, have our own lawn, etc.

“We are probably not people like that yet, it is more fun for us to see a green meadow in our garden. While this has been applied more to the older generations, it seems to apply to the young as well. A significant proportion of those young people who buy an apartment , in 3-7 years, they still decide to move to the road and build or buy a house. A house, for example, in the central part of Vilnius is rarely thought about because the prices are really high. And a part of the respondents say that it is difficult to say what type of home they would like to buy ”, says the interviewee.

Priority: for your own home, but to buy without haste

Researchers are also investigating the cult of housing in Lithuania. They discover what determines the desire of Lithuanians to have their own home. Why is it so important to us, unlike the English, that Germans have their own home. Some of this connects with the sedentary nature of Lithuanians, the past when we were deported and away from home. We need a cozy corner where we feel safe and separated from the misfortunes of the world.

Vilnius University Faculty of Philosophy (VU) doc. Dr. Rūta Brazienė, who studies the housing cult in Lithuania, has said that research shows that young Lithuanians actually prioritize their own housing. There are many reasons for this, he said.

“One of them is that the majority of the society in Lithuania are still homeowners. The fact that the idea of ​​home ownership is supported by a large number of young people is partly due to historical traditions, when most people live in their own homes. Furthermore, although there are relatively large differences between countries, private home ownership remains the dominant form of home ownership. The reform of housing policy in Lithuania was similar to that of many other post-communist countries, when due to these reforms, private housing in post-communist countries represents more than 80%, ”shared the researcher.

Doc. Dr. R. Brazienė went on to say that the mentioned indicator is one of the highest in Lithuania: 88.6 percent. Similar figures are found in other post-communist countries: Bulgaria – 81.7%, Croatia – 89.4%, Estonia – 82%. and in Hungary, up to 92%. By comparison, in other European countries the figure is much lower, for example, private housing in Austria stands at 51.6%, in Finland at 67%, in Denmark at 51%, in the Netherlands at 60% and in Germany 45.4%.

R. Brazienė assumes that another important reason is that the importance of housing as a social condition is still very strong in Lithuania. Housing is an aspect of the lifestyle or expression of personality.

But right here doc. Dr. R. Brazienė denies the claim that Lithuanians are much more flexible when it comes to renting a house or else they tend not to be in a rush to buy their own house, rent longer and find out what they really want in his professional and personal life.

“Historically yes, due to the long occupation, mentality, etc. But now we see that the younger generation is also quite easily changing their place of residence in search of better living and working conditions ”, explains the researcher, adding that another obstacle for a young person to acquire a home – lack of funds.

Therefore, a young person really wants to own their own home, but is in no rush to buy it until they are satisfied that they are financially and emotionally mature for such an important purchase.