K&H: every fourth young person living with their parents would move immediately

The housing situation of young people in Hungary shows a mixed picture: 63 percent of them already have their own household, and only a narrow group of those who remain in their parents’ house, only 6 percent, feel that they do not want to move out at all, meaning they will stay in the mom hotel – according to the K&H youth index, which examined the moving intentions of 19-29 year-olds at the end of last year. Two-thirds of young people still living with their parents are planning to leave, but do not consider it urgent. Among those who would like to leave their parents’ house as soon as possible, renting an apartment is the most popular option, 58 percent of them would choose this path. More than a third of them consider buying an apartment as the most attractive solution. In addition, 4-4 percent of them would move in with their partner or another family member.

Buying an apartment is almost impossible without a loan

Nearly a third of young people, 28 percent, are planning to buy a property in the next three years, but the distribution by gender and economic activity hides big differences. 38 percent of men plan to buy an apartment, compared to 19 percent of women. 32-32 percent of active earners, i.e. young people in employment and students, would move into an independent household as soon as possible.

The ability to finance is telling. Young people believe that 20 percent of them would buy a home solely on their own, while the remaining 80 percent will be forced to borrow more or less. The proportion of those who would buy at least half of their homes on credit is 52 percent.

A crutch for a home

These data indicate that state subsidies are crucial for young people due to the lack of sufficient own resources and the need to borrow.

The Otthon Start Program offers an excellent opportunity for those about to buy a home, as it provides a state-supported, preferential loan structure, which is also available at K&H. Within the framework of the program, young people can apply for a loan amount of up to 50 million forints, which can significantly facilitate the start of independent life and the acquisition of their own property, even in those age groups where the amount of their own savings is lower. According to K&H data, the average amount of housing loans applied for under the program since its launch in September has been 35 million forints, with an average term of 23 years, while 35 percent of borrowers were in the 21–30 age group.