Danes experience significant decline in homeownership as government seeks housing solutions

Over the past 40 years, significant changes have occurred in the types of housing that Danes live in, according to a recent report from the Ministry of Housing. Most notably, the trend among 25 to 29-year-olds shows a decrease in homeownership; nearly 60% lived in owner-occupied homes in 1981, whereas today, that figure is just below 30%. A similar pattern is observed among those aged 30 to 39, with the percentage of homeowners dropping from 71% to 50%.

Housing Minister Pernille Rosenkrantz-Theil argues that many families wishing to settle in owner-occupied homes lack the opportunity to do so. A 2022 survey revealed that 74% of respondents preferred to live in owner-occupied housing, while only 13% favored renting.

According to Martin Vinæs Larsen, a political scientist at Aarhus University, this trend is attributed to a decline in both the supply and demand for owner-occupied homes. He notes that in the 1980s, families formed earlier and more young people lived outside urban centers, increasing homeownership rates. Today, young individuals are establishing themselves later and are less inclined to commit to buying homes in their 20s.

While younger individuals struggle to enter the housing market, there has been an increase in the number of people over 60 living in owner-occupied homes compared to 40 years ago. Rosenkrantz-Theil points to soaring housing prices and a shortage of affordable housing as contributing factors, highlighting a disproportionate construction of private rental units.

The government is developing a new housing proposal aimed at achieving a better mix of housing types, although specific measures remain undisclosed. Vinæs Larsen suggests that increasing the supply of homes, particularly owner-occupied options, is crucial for improving accessibility for young people.