Marianne B and her partner had owned their Paris flat for seven years when they decided to buy a bigger one after their second child was born. They discovered the perfect apartment for a price that fell within their budget.
But then they spoke to lenders — and decided to plunge back into the rental market instead. Their reason: the cost of credit.
“Borrowing €800,000 would cost us €500,000 [in interest] compared with €50,000 for €500,000 in 2019,” said Marianne, who asked that her full name not be used. “It just doesn’t make sense. We’re going to have to turn to a rental again.”
Like Marianne’s family, many Europeans are being pushed into rentals as high borrowing costs, income requirements and the need for large deposits make buying homes unfeasible. But they are joining an already heated market.
https://archive.ph/7R1bO#selection-2233.0-2259.59