Why Germans Don’t Buy Houses | Feli from Germany

Last year, I bought a house in the US which is something that I definitely wouldn't have done (yet) if I had stayed in Germany. Because what many people don't know: Germany is a nation of renters! We have one of the lowest homeownership rates in the developed world! But isn't Germany the biggest economy in Europe? So how come Germans don't buy houses? 🤔 Let's find out!

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0:00 Intro
0:27 Germany - nation of renters
1:58 Homeownership in numbers
4:58 Reasons for low German homeownership
13:21 Personal Experiences
15:33 Summary
16:02 Your input!
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Links/sources:

Picture credits:
Plattenbau 1987: Bundesarchiv, Bild 183-1987-0128-310 / CC-BY-SA 3.0
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▸Mailing address:
PO Box 19521
Cincinnati, OH 45219
USA
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ABOUT ME: Hallo, Servus, and welcome to my channel! My name is Felicia (Feli), I'm 28, and I'm a German living in the USA! I was born and raised in Munich, Germany but have been living in Cincinnati, Ohio off and on since 2016. I first came here for an exchange semester during my undergrad at LMU Munich, then I returned for an internship, and then I got my master's degree in Cincinnati. I was lucky enough to win the Green Card lottery and have been a permanent resident since 2019! In my videos, I talk about cultural differences between America and Germany, things I like and dislike about living here, and other topics I come across in my everyday life in the States. Let me know what YOU would like to hear about in the comments below. DANKE :)
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[FelifromGermany]

*What are your experiences with this topic? Do people in your country prefer renting or owning?*

[janfg]

I am also German and when I visited Australia I was surprised at how people in their early 20s already bought houses for themselfes. In my hometown you literally need to be a millionare to buy even your own flat, and its still much cheaper than the larger german cities like Munich.

[USWARRIOR]

Just wanted to say I recently came across your YouTube channel and have been enjoying your videos. While serving in the U.S. Army I was stationed in Wesel from 1985 - 1989. I grew up in Columbus Ohio so we have this in common. I loved Germany and made quite a few German friends some of which I still stay in contact with to this day. It’s fun watching your videos and they bring back good memories for me. I remember going to the Aldi’s for the first time in Germany and having to purchase my grocery bags that was a first for me then when Aldi’s came to the states or at least Ohio I would tell all my friends about going there in Germany and I had to buy my groceries bags. I know I’m off topic here but it’s the first time commenting so I wanted to share that with you.

[paulsomers]

Once we bought our house in New Jersey, we paid off the mortgage asap. We lost the tax deduction, but that was less than the actual mortgage cost. So we came out well ahead. Then when we sold the property, it had appreciated so much that we didn't have to borrow for our second house. We remain debt free to this day 16 years later.

[ChristopherAbelman]

Formerly when I purchased my first home to live in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[Ulas_Aldag]

Buying a house here in hamburg just seems impossible, especially for younger folks. Places that had a price of 400k 15 years ago are now approaching a million euros. The prices increased so much in the last decade that the only option for us is to leave our beloved hometown and move to a more rural place in the vicinity.

[DetlevHochmuth]

Not to forget 5.5% "Grunderwerbssteuer" (tax on the price of houses/real estate) and 1.5% "Notargebühren/Grundbuchamt" (public notary and deed documentation) which make buying and selling real estate in Germany more expensive and less likely to occur often. Houses in Germany are long-term, often life-long decisions. Houses in US are re-sold more frequently and easily. Also note that in New York approx 67% of homes are rented, too, for example. The higher the absolute prices, the higher the renter ratio. The high quality level and very high energy-saving levels enforced by law make building houses in Germany very expensive. When inheriting, you are required to upgrade to certain energy-saving levels, which is quite expensive. Many heirs sell instead of keep, also inheritance tax is bitter in Germany.

[danadarnell]

Hello,
Listening to you has helped me understand a lot about my father, who passed away over 20 years ago. My father was born and raised in Germany during WWII. Came to USA at 17 years old, joined American Air Force. Learn to speak English by reading American comic books. My mother till this day complains about how hard it was for her to get my father to buy a house.

[christoph]

I’m a top 3% earner in Germany living in the suburbs of Frankfurt. Finding a house is a real problem as they’re in great demand. Also financing it is a nightmare, even my income was considered too low by some banks. Additionally I wouldn’t even be able to pay it off by retirement for bank rates I could afford. So essentially you need parents to pass on inheritance early.

[AleksiHimself]

This was an exciting video. Here in Finland, it's quite the opposite. I believe around 60% of dwellings are owner-occupied. Finns don't invest in the stock market but buying a home has always been a top priority.

[funny]

My German girlfriend said the land is too expensive and not too much of it. This was after watching a German TV game show where a family won a house that was smaller than an American starter home. The whole family was crying with happiness that's when I asked her the question about owning a home in Germany.

[omgsolikevalleygirl]

I live in Germany and I definitely want to live in a house, but right now it is just much too expensive... there is something extremely fishy happening with global real estate and it has hit Germany as well beginning around 2008-2010. Right now there is no way an normal working person will ever be able to afford a house by themselves during their lifetime in Germany.

[oldtop]

I'm a year late to this one. While stationed in Frankfurt I got curious about what land cost nearby. There was a house for sale on my way to work, so that triggered my interest. HOLY CRAP Batman! I had never heard of buying land by the square meter, and the cost of one meter just astonished me. We are talking 11 square feet of land for thousands of Euro (Marks back then). So, my initial impression was that folks lived in apartments due to cost. You explaining the issues after the war made total sense to me once I heard it.

The US has a lot of land, but even here costs of buying a house can be pretty high depending upon location. And, like Germany, the prices just zoomed up the last couple of years. This is a global thing for the industrialized countries it seems.

[TomsDoItYourself]

This is such an interesting topic. Where I live in upper Bavaria, houses are just too expensive to buy, like €1.3M minimum. We are forced to rent, because we do not have the means to buy. Our duplex costs €1750 to rent, but would cost €4000 per month on a mortgage. I am sure many more germans would own, if they had the means. As a renter, you can easily get kicked out (Eigenbedarf), and then you are squabbling to find a new place to live. Plus, many landlords are asshats. Of all the people I know that still rent as we do, they do so because they like us, cannot afford to buy.

I have been in Germany since 2007, and I feel like the gap between the rich (those who own multiple houses) and poor (renters) is getting wider and wider.

[Mdwells]

Really enjoy your videos as they explain so many things which I wondered when stationed for four years back in 1988-1992. Somethings you didn’t want to ask or you didn’t know who to ask, your videos are a great source of information to help educate us Americans. I loved my time in Germany and really want to return some day before I get to old to do so. I loved the many great festivals and all the awesome food, beers and brotchen.

[jacobvriesema]

I also live in the Midwest and my experience was pretty similar to yours. So long as you can get a decent job, it’s normal to buy your first home in your 20’s or early 30’s. It only took about 1 month from looking for houses to when I bought a house, and then we waited 2-3 more months to allow the previous owners to move out. Our realtor was very kind and helped us out thru the whole process!

[anjah.]

Very good video! It took me 8 years to find a plot in the Munich outskirts. The price per square meter in a tiny village ranges around 1000 € and with building a basic house you'll land around a million. Plus you'll have to pay tens of thousands in fees and annual taxes.

[californiahiker]

Thank you, Feli! Over the years this has always been puzzling me. I was born and raised in Germany, but I’ve been living in the US for decades. My grandma owned her home in Germany, my parents rented apartments til the day they died. When my husband and I bought our first home in California we were in our mid 30’s. We felt paying rent is like flushing money down the drain. You pay off a house over 15-30 years, then you own it. If you pay rent all of your life your money is gone. Buying a home is one of the best investments you can make.

[kellywellington]

I was born, raised and have lived the overwhelming majority of my life in the western US. Home-ownership was a huge status in my world. I grew up in a lower middle-class family where an ambitious father overcame his rural past to become professional in his trade and an urban property owner. As a young man, I decried that I would likely never own property in that I had no 'nest egg', nor earning capacity, to buy my own home. I figured I would be renting for life. Then, I married a woman who had inherited from her father and owned a small property with a bungalow in the inner city. By owned, I mean paying off a 20 year mortgage contract. We paid it off together, then she died of cancer. I never thought I'd own property, but I inherited the home I helped my wife pay for....a cozy little two bedroom bungalow with a small cottage garden.

[TheErber]

Hi Feli! My wife and I bought a house in May of last year in germany. Beautifuly located in the black forrest. The process of buying the house in general was very easy. We just regret that we found the house via a realestate agency and had to pay them almost 15000 Euros for listing the house online so we could find it, showing it to us (which literaly meant opening the door) and going to the notary office with us. All in all we are more than happy with our house! But I wish there would be more support for people in general, who are thinking about buying or building houses! I mean we had to pay almost 20000 Euros in taxes alone!