A residential study conducted by Appinio on behalf of ImmoScout24 analyses the willingness of property seekers in Germany to compromise. The investigation sheds light on which features of a property or its residential environment are negotiable for a significant cost reduction, and which are considered essential. Price emerges as the dominant criterion, representing the most frequent reason for a property being rejected in both rental and purchase searches.
For a one-third reduction in housing costs, prospective tenants and buyers show willingness to make concessions on certain criteria. According to the study, 27 per cent of respondents would accept an older building. A reduction in living space would be conceivable for 21 per cent, while 20 per cent would accept a longer commute. Furthermore, 19 per cent could forgo a private parking space, and 18 per cent would tolerate less favourable public transport links.
However, the willingness to compromise significantly decreases when it comes to fundamental aspects of living quality. Only 9 per cent of respondents would be prepared to accept a less desirable location. A noisier environment or lower energy efficiency would only be accepted by 7 per cent each for lower costs. Remarkably, 23 per cent of the study participants stated that despite an offer with significantly reduced housing costs, they would not be willing to compromise on any of the surveyed characteristics.
Price as a Limiting Factor for Rental and Purchase Properties
The study also differentiates between prospective tenants and buyers. For rental flats, price proves to be the most frequent exclusionary criterion. 38 per cent of respondents state that an excessively high rent is the primary reason for not pursuing an otherwise suitable flat. Flexibility here tends to be found in specific features: 33 per cent would forgo a guest toilet, and 18 per cent each could manage without a modern bathroom, a modernised flat, or a balcony/terrace respectively.
In the segment of properties for sale, price is also a decisive factor. 25 per cent of prospective buyers cite an excessively high purchase price as an exclusionary criterion. Additionally, 19 per cent are prepared to refrain from buying due to high renovation requirements. With regard to features, prospective buyers are more flexible: 25 per cent would forgo modern fittings, and 24 per cent could imagine a property outside their preferred urban area. Giving up an additional room would be conceivable for 21 per cent, while 20 per cent each would be willing to compromise on living space or a modern bathroom.
Conclusions on Prioritisation
Nicolas Cheron, Managing Director of ImmoScout24, summarises the results by emphasising that the study clearly demonstrates the limits of willingness to compromise in the housing search. He highlights that people show high flexibility regarding furnishings, space, or the age of the building. In contrast, the price and fundamental living qualities such as location and the quietness of the residential environment are perceived as significantly more important criteria, for which the willingness to make concessions is considerably lower.
