The trends are changing: young people choose not to buy permanent housing

“Today, people are getting less and less attached to their place of residence – they no longer believe that owning a permanent housing is a measure of success, guarantee of stability or major goal in life. On contrary, they value mobility more. This is not because they lack funds; this is due to people’s unwillingness to get attached to housing or things. Foreign studies show that people aged 30–35 seldom buy their own housing and are more willing to invest in their leisure, for example, travelling, rather than real property. They often choose to rent objects or housing. In the U.S., they are referred to as the generation of tenants,” said Darius Klimas, Head of the Business Development Service of Citadele bankas.

According to the results of a representative survey initiated by Citadele, 60% of the residents have moved 1–3 times in their lives, 29% – have never moved, while 8% – are mobile and have moved 4–5 times.

Respondents with higher education living in the major cities of Lithuania are more likely to change housing.

“They studies reveal that people start working at a younger age. Moreover, economic growth and growing income result in people choosing to acquire housing based on their current needs and situation. For example, having switched to a different job, people are no longer afraid to acquire new housing,” noted Mr. Klimas.

According to the results of the survey, life changes, desire to buy own housing or new job are the most common reasons forcing people in Lithuania to look for a new place to live.

The survey on the financing of housing in Lithuania was performed by Spinter tyrimai in August, 2018. 1,007 respondents participated in the survey commissioned by Citadele bankas.

About Citadele Group

Citadele is the third-largest bank in Latvia by number of clients. The bank’s shareholders are the European Bank for Reconstruction and Development and an international group of investors with global experience in the banking sector. Citadele Group is managed from Latvia, while its subsidiaries and branches operate in Latvia, Lithuania, Estonia and Switzerland. Citadele provides transactions and card payments, loans, deposits, investments, active management and leasing services, as well as a range of exclusive, unique products, for example, contactless payments using mobile devices such as bracelets, stickers and mobile phones. In 2017 one of the leading customer service evaluation and improvement companies in Central and Eastern Europe, Dive, acknowledged Citadele as the bank with the best customer service in Latvia and Lithuania.