Fewer Romanians can afford to buy a home, making renting a long-term alternative

A recent survey by Unlock Market Research for Colliers suggests that homeownership in Romania is lower than previously thought. While official statistics indicate that 95% of urban Romanians own their homes, the survey of 1,000 respondents found the actual figure to be around 73%. Interest in buying property has also declined, with only 35% expressing a desire to purchase a home in 2025, down from around 44% in previous years. This shift is largely due to rising property prices and stricter lending conditions.

Despite these challenges, only 6% of non-renters plan to move into rented housing, a decrease from approximately 10% in past years. Limited housing supply and increasing costs have made renting more than just a temporary solution, with more people considering it as a medium-term option. As a result, tenants are becoming more selective, seeking modern, fully furnished apartments with additional amenities.

In a market still dominated by homeowners, only 11% of city residents report living in rented accommodation. In major urban centers, this figure rises to 15%, reflecting both a growing acceptance of renting and a more balanced cost comparison between rent and mortgage payments. Meanwhile, 16% of urban residents live with parents, relatives, or friends without owning property or paying rent. This trend highlights both economic challenges and cultural preferences for extended family cohabitation.

According to Gabriel Blăniță, Director & Advisory Services at Colliers Romania, homeownership remains a priority for many Romanians, but affordability issues and strict credit conditions have reduced purchase intentions. The rising cost of new housing, coupled with a slowdown in construction, has pushed prices higher, further discouraging potential buyers. As a result, renting is increasingly seen as a practical alternative rather than a compromise. Many tenants opt for rental properties that offer better locations or more space than they could afford to buy, and they also have higher expectations regarding amenities such as parking and access to public transport.

Investment in residential real estate remains strong, as many Romanians view property as a safe way to preserve and grow capital over the long term. However, alternative investments have not gained much traction, partly due to limited financial literacy. While residential property prices have been rising steadily for the past decade, this trend is not guaranteed to continue, and investment decisions should be based on individual property assessments rather than general market patterns.

Housing affordability varies significantly by location, with a widening gap between central, well-connected areas and properties on the outskirts. Many developers are shifting towards metropolitan areas, where housing prices are more aligned with average wages. However, in large cities, the high cost of housing makes buying in central areas increasingly difficult.

As these market dynamics evolve, both buyers and tenants are adjusting their strategies. With fewer new properties available in central locations and rising prices, renting continues to be an attractive short- to medium-term option. However, if interest rates decline and the gap between rents and property prices narrows, homebuying intentions could increase.

Blăniță emphasizes that the housing market remains in a delicate balance between demand and affordability, with purchasing decisions influenced by economic and personal factors. He also notes that Romania has one of the highest overcrowding rates in the EU, highlighting the ongoing need for housing, regardless of broader economic trends.

Source: Colliers Romania