intergenerational justice

housing

Policy makers and civil society argue that current generations have a duty to pass on to the following generations goods and resources at least similar to those they inherited from previous ones.

Opportunities, too, must be fairly distributed among different generations.

But is this what is happening?

We conducted a study with the aim of answering the following questions: How has access to home ownership evolved in Portugal?
Are there inequalities between generations? What social risks do they represent?

Housing: what we leave

from today to tomorrow


0%

1990

0%

2000

0%

2016

Source: EU-SILC

The average annual expenditure of households with housing more than doubled within 26 years​

Conversely, public housing expenditure decreased by almost half between 1995 and 2017.


0%

1981

0%

1991

0%

2001

0%

2011
0%

2017
Source: Census
Source: EU-SILC Microdata

The percentage of young people up to 29 years old who own their own home has been decreasing dramatically since the beginning of the century. It is estimated that, in 2017, only ¼ were home owners.


0%2004

0%2018

Source: EU-SILC

The percentage of young adults (18-34) living with their parents has been increasing steadily. In 2018, it had already reached 64%.



0%


0%

Homeowner with
mortgage (<=29 years old)


0%


0%

Homeowner with
mortgage (30-44 years old)

2011
2017
Source: EU-SILC Microdata

Unlike previous generations, Millennials have a low percentage of homeowners with mortgages before age 30.

However, when surveyed, 88% stated that they would like to live in their own home within 5 to 9 years*

(*Source: Century 21, 2019 – II Observatório do Mercado da Habitação em Portugal)


140
120
100
80
60
40
20
0
<35
35-44
45-54
55-64
65-74
<=75
2010
2013
2017
Source: Bank of Portugal, 2020 – Inquérito à Situação Financeira das Famílias: resultados de 2017 e comparação com as edições anteriores

Younger households have seen a net wealth reduction of over 50% since 2010


Idade da Reforma

40
44
48
52
56
60
64
68
72
76
80
84

Source: Bank of Portugal, 2018 – Distribution of the amount owed on home loans by households, by the borrower’s age when the contract reaches its term

In 2018, 55% of home loans were held by people who would only finish paying them after the legal retirement age.

Study authored by Romana Xerez, Elvira Pereira and Francielli Dalprá Cardoso, from the Center for Administration and Public Policies of the Higher Institute of Social and Political Sciences of the University of Lisbon.

The analysis was carried out using the 1970-2011 Census, Pordata, Eurostat, Statistics Portugal and microdata from the 2011 and 2017 Survey on Income and Living Conditions (EU-SILC).

 

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