More Danes are entering the rental market - young as old. Since 2010, the number of rental homes has increased from approximately 1.2 million to 1.4 million, in 2020(6) – and where it was previously the home owners who increased, it is now the tenants. A development that may be due to our lifestyle, priorities and that more people are looking towards the big cities with education and attractive job opportunities.
More detached houses are being rented out
The detached houses are also experiencing momentum. Here we see a major development, where the number of detached houses inhabited by tenants has increased by 41% since 2010 - from 92,351 to 130,311 rented detached houses, in 2020. Thus, approximately 10% of the detached houses are rented out. (2)
An increased number of tenants
The reason for the large increase in the number of tenants and why more people are starting to rent their homes is not least due to the number of students, which has increased significantly since 2010. However, this group is not surprising, as students rarely have the finances to be approved for a home purchase, and therefore choose to rent. (1)
But as our family relationship develops - that we become more single - many people experience an advantage by renting their home. (4)
At Housing Denmark, we experience all types of tenants, both young people, families, single people and not least expats, who live and work in Denmark for a number of years, which is why they choose to rent, as opposed to buying.
Throughout 2020, when Corona restrictions have ravaged and turned travel activity with 180 degrees, we have experienced a temporary decline among expats: “previously we rented 75% of our homes to expats, now this has decreased to 50% of our homes to expats. Furthermore it is offset by more Danes, who increasingly are renting our project homes, ”says Steen Lundsfryd, Director of Housing Denmark.
Our new lifestyle is shaping the future
The increase in the number of tenants may very well continue, according to futurist Anne-Marie Dahl. She sees a change in the outdated “stable life”, where we previously remained in the same job for many years and led the same lifestyle throughout life, this has changed. This means that more people choose to rent and the flexibility, instead of settling into an expensive owner-occupied home. (1)
Rental housing gains acceptance among all generations
It is not only the young people in the capital and the big cities who choose the rental housing and flexibility. Also the older generation follows the dream. And more people swap out their privatly owned house with a rental housing (3) – perhaps to achieve more freedom and enjoy the free value.
Rasmus Juul-Nyholm, director at Cobblestone, says: “More middle-aged people without children are replacing their owner-occupied housing with rental homes in the city to have more financial flexibility and begin a new chapter in their lives. In addition, the number of Danes working on part-time- and freelance contracts is growing explosively. Their finances are often more uncertain than permanent employees. Many of them prefer a lease because it is less risky. (5)
At Housing Denmark, we are also experiencing an increasing demand for our rental homes that are more expensive – from both middle-aged, couples, singles and families - this can be anything from a "stopover", to renting for a longer period.
We thus see a shift and a positive development in the rental market, where renting becomes a option for all, and in line with our lifestyle and development, we expect continued progress in the already popular rental market.
(1*) Bolius: (https://www.bolius.dk/ejere-er-rigere-lejere-er-friere-89944
(2*) Analyse, som Nybolig har foretaget af tal fra Danmarks Statistik: https://www.nybolig.dk/presse/lejere-indtager-parcelhuset
(3*) Berlinske: https://www.berlingske.dk/ejendomme/lejeboliger-vinder-frem-men-ikke-i-hovedstaden
(*4) https://www.nybolig.dk/presse/antallet-af-singlehusstande-stiger og https://www.dst.dk/