Renting or owning? Where is the housing market headed, and what are buyers looking for today?

Housing today is about far more than whether someone buys or rents a home. The decision is increasingly shaped by a combination of life circumstances, financial possibilities, long-term plans and the market environment.

At one of the expert panel discussions at the Portfolio.hu Women’s Money & Mindset conference, participants explored exactly this question: where is the housing market headed, what role do government programmes play, and can renting and homeownership genuinely exist side by side as viable alternatives?

Our firm’s owner, Dorottya Papai, MRICS, also took part in the discussion, sharing her professional insights into current housing market trends.

A more uncertain market, more complex decisions

The current housing market is being shaped by several factors at the same time. Fluctuations in demand, changes in the regulatory environment and government programmes all have a significant impact on how prospective buyers think and make decisions.

At the same time, the buyer’s decision itself has become more complex.

Today, in many cases, the question is no longer simply “Can I afford to buy it?”, but also:

• what stage of life am I in,
• how long do I plan to stay in a particular city or property,
• how much financial security does ownership provide me,
• how important is flexibility,
• and what alternative would renting the same type of home offer?

As a result, the housing market can increasingly be understood less through prices and transaction volumes alone. Behind the figures are life circumstances and long-term decisions.

Homeownership still dominates in Hungary

One of the panel’s interesting comparisons focused on the differences between housing habits in Hungary and Western Europe.

Homeownership remains dominant in Hungary: more than 90% of the population lives in owner-occupied housing. In Western Europe, by contrast, renting plays a much greater role, and in several countries 60–70% of housing is associated with rental arrangements.

This is not merely a difference between two financing models. It also reflects a different way of thinking about housing.

For many families in Hungary, property is simultaneously a home, a form of savings and a long-term asset. Ownership therefore carries strong emotional as well as financial significance.

In Western Europe, by contrast, renting is far more widely accepted as a long-term way of life. Housing security is not necessarily tied directly to ownership.

But do we really have to choose between the two?

One of the important questions for the future may be whether renting and homeownership can exist side by side as genuine alternatives.

Achieving this, however, requires a more predictable rental housing market, arrangements that allow for longer-term planning, and more flexible housing models.

In a well-functioning housing market, the goal is not necessarily for everyone to become a homeowner. Rather, it is to enable people to choose a form of housing that fits their life circumstances and financial means.

For someone at the start of their career, for example, flexibility may be the most important consideration. For a family, stability and long-term predictability may matter most. An investor, meanwhile, will prioritise an entirely different set of factors.

The role of government programmes cannot be ignored

Government measures and support programmes play a significant role in shaping the housing market. They can directly influence demand while also affecting the decisions and expectations of market participants.

This is why analysing the housing market requires looking beyond prices alone. It is also important to understand the regulatory environment in which purchasing decisions are made, and how buyers, sellers, landlords and investors respond to it.

The housing market of the future may be more flexible

One of the key takeaways from the panel discussion was that housing decisions are becoming increasingly personalised.

There may not be a single “right” model in the future. Homeownership and renting can work side by side – provided that appropriate, predictable and sustainable long-term conditions are available for both.

From the perspective of REMAX GO Commercial, one of the key questions in the coming years will therefore not simply be how property prices develop, but also how the way we think about housing itself changes.

Because ultimately, the housing market is not just about properties.

It is about how we want to live – and what opportunities we have to make that possible.

We would like to thank the Portfolio.hu team for the invitation and the insightful professional discussion, as well as all panel participants for their valuable perspectives.

Source: Portfolio.hu – Women’s Money & Mindset conference