For decades, owning a home was the default ambition for most Europeans. But a new study suggests that dream is slipping away for a growing share of the population, and renting is no longer just a stepping stone—it is becoming a permanent condition.
The Forever Renter Global Index, which analyzed housing data from 39 OECD countries, found that European nations dominate the list, making up 28 of the 39 countries studied. That concentration puts the continent's housing markets under a particularly sharp lens, as researchers tracked renter shares, homeownership rates, rent burdens, crowding, and how much property prices have outpaced local wages since 2015.
Where renting is the norm
Western and Northern Europe lead the index with the highest renter populations. Switzerland tops the global list with 61.2% of households renting, followed closely by Germany at 55.4%. Denmark ranks first overall in the index with a score of 67.2 out of 100, reflecting a relatively balanced split between renters (47.5%) and homeowners (52.2%).
In Luxembourg, the picture is different: only 36.0% of households rent, while 62.3% own their homes. But in Finland and Sweden, renter shares of 38.1% and 38.9% respectively come with severe rent burdens and structural crowding constraints, according to the study.
Southern Europe shows a mixed picture. Portugal maintains a high homeownership rate of 72.1%, but rental supply is tight, and property prices have climbed 48.8% faster than local wages since 2015, pushing its price-to-income index to 148.8. That kind of wage decoupling is a growing concern across the region.
The hidden cost of ownership
High homeownership rates do not automatically translate into comfortable living conditions. In Central and Eastern Europe, countries like Slovakia (93.5% ownership) and Romania (92.8%) boast some of the highest ownership rates in the study, but renting accounts for less than 5% of households. Yet these same countries often report severe spatial strains.
Latvia and Bulgaria, for example, see overcrowding affecting 30% or more of their populations, with multiple generations forced to live under one roof. In contrast, renter-heavy nations in Western and Northern Europe offer larger living spaces per household, suggesting that renting can sometimes provide more comfort than buying.
The study's authors argue that the traditional trade-off—ownership for stability, renting for flexibility—is breaking down. In many European cities, renting is no longer a temporary phase but a long-term housing strategy, driven by high prices, stagnant wages, and changing attitudes toward property.
Across the Anglosphere—the United States, Canada, Australia, and New Zealand—rental populations sit at 30-40%, with high costs and large down payments delaying homeownership for younger generations. In Colombia, renter shares are nearly 41%, reflecting rapid urban densification. But in Chile and Costa Rica, ownership remains dominant, mirroring cultural priorities seen in Southern and Eastern Europe, where family-backed property acquisition is still the primary vehicle for wealth accumulation.
For Europe, the implications are profound. As permanent renting becomes more common, policymakers will need to rethink housing policies, tenant protections, and the social safety nets that have long been tied to homeownership. The study's findings suggest that the continent is at a turning point, where the dream of owning a home may be giving way to a new reality of lifelong tenancy.
