For many young people, acquiring their own home represents a significant life goal. A survey conducted by YouGov on behalf of the building society Schwäbisch Hall confirms this: 64 percent of 20 to 29-year-olds aspire to own their own property. In contrast, however, only 46 percent of this age group plan to acquire home ownership within the next ten years. This discrepancy between desire and concrete implementation points to widespread uncertainty regarding the path to ownership.
The analysis of planning readiness reveals another gap: only 14 percent of 20 to 29-year-olds are already in an active information or orientation phase regarding property and housing. Although many young adults fundamentally engage with the topic, detailed planning is often absent. Ralf Oberländer, building finance expert at Schwäbisch Hall building society, emphasises the decisive advantage of time: “Young people in their early twenties do not yet need to know where and how they want to live later. But those who start early to inform themselves, save regularly, and check funding opportunities gain valuable leeway for later decisions.”
Hurdles in Capital Formation and the Time Advantage
A Forsa survey conducted by the Association of Private Building Societies in 2026 shows that a large proportion of 20 to 49-year-olds find acquiring home ownership more difficult today than five years ago. Oberländer confirms this assessment and points to increased purchase prices, higher construction costs, increased ancillary costs, and stricter equity requirements as significant impediments. In particular, building up equity represents a considerable challenge. An evaluation by the Kiel Institute from 2025 (GREIX) proves that, even with a savings rate of 20 percent of disposable income, significantly more time is now required for the necessary equity formation.
A guideline for a property purchase is 20 to 30 percent equity, including ancillary costs. At a minimum, the ancillary purchase costs, typically 10 to 15 percent of the purchase price, should be covered. As an example, Oberländer cites a property for EUR 300,000, for which an equity requirement of around EUR 60,000 at 20 percent would be necessary. This illustrates that building equity is a long-term undertaking in which young people possess a decisive time advantage. An early start makes it possible to build up a substantial equity cushion over the years, even with moderate savings amounts of EUR 100 or EUR 200 per month, and to benefit from the compound interest effect. The savings rate can be adjusted as income increases.
Strategies for Financing and Information Gathering
In addition to building equity, the early comparison of suitable savings and financing models is important. Young adults should evaluate which solutions correspond to their goals, time horizon, and risk appetite. While traditional savings forms often offer more security with lower return opportunities, capital market-oriented investments such as ETFs can enable higher returns in the long term but are subject to value fluctuations. Building society savings can be an option if planned equity formation, interest rate security, and the use of state subsidies are paramount. This includes, in particular, the housing construction premium or the employee savings allowance, provided individual conditions are met. Oberländer emphasises: “There is no single correct investment form. The decisive factor is to honestly assess: How much risk can and do I want to bear? How important is security to me? And when could a property purchase realistically become possible?”
For an effective start to property planning, three steps are crucial: knowledge acquisition, regular saving, and seeking professional advice. Information can be gained through various channels such as social circles, parents, financial blogs, social media, podcasts, and online videos. However, it is crucial to critically check the reliability of sources. Given the financial significance of a property decision, reliable information and personal advice are indispensable. Professional advice can help to realistically align individual wishes, income levels, savings rates, and the time horizon. Early planning here does not mean a rigid commitment but creates flexibility for later adjustments to changed life circumstances. Oberländer summarises that “the dream of home ownership does not have to be set in stone at a young age. The decisive factor is to lay the foundations early.”
