Real estate, a safe haven for millennials anxious to build up retirement capital and ready to compromise to become homeowners

• 56% of 18-34 year olds say they are determined to buy real estate as an investment for their retirement
• 55% of French people surveyed say they are ready to buy a property that would require energy renovation in the future. An acclaimed solution for access to property which, moreover, would allow a gradual renovation of the housing stock
• A solid knowledge of existing tax systems to finance energy renovation. Among the best known: MaPrimeRenov', Le Chèque Energié and the zero-rate Eco-loan

Entitled "millennials and mortgages", this survey was conducted by the YouGov institute, with a representative panel of the French population of 1.000 people aged 18 to 34. The latter reveals the desire of these young adults to invest in real estate, an investment capable of reassuring, in an uncertain economic context.

Taking into account the current context of the real estate market, in particular the rise in interest rates, 40% of French people questioned said they would prefer to buy a property rather than rent it.

A craze for buying reinforced by the orientations taken within the framework of the pension reform, 56% of 18-34 year olds, i.e. nearly 3 out of 5 young people, declare that it constitutes an additional argument for buying a property. real estate. A figure that even appears at 69% among millennials who are already owners, who obviously do not plan to rent a property after having experienced home ownership.

A trend that is confirmed regardless of the regions surveyed, led by the Paris region for which 60% of respondents are encouraged to buy by the pension reform, followed by the North-East and North-West, respectively at 57% and 56% purchase intent.

For Pierre Chapon, co-founder of Pretto: "In a context of a significant rise in interest rates observed since the beginning of the year and a reduction in their purchasing power, we observe that young French people between the ages of 18 and 34 consider the purchase of real estate more than ever as a safe investment. Millennials need to be reassured to be able to approach their future with more serenity and stability. This is ultimately what they are looking for by expressing their desire to become homeowners, as their elders have also done in the past. »

Agile millennials, ready to make efforts relating to the size of the property or its location

Aware of evolving in an environment that reduces their purchasing power in general and their borrowing capacity in fine, 18-34 year olds nevertheless remain motivated to carry out their acquisition project in 2023.

So much so that many of them say they are ready to make concessions to achieve this:

• 24% of 18-34 are ready to buy a smaller property if it allows them to become an owner in a complicated market context;
• 38% of Ile-de-France residents are ready to buy a property in another city or region as part of a hypothetical real estate purchase project to be carried out in 2023.

Very proactive, the 18-24 year olds are for their part ready to make many more concessions than their elders in the 25-34 year old category if this allows them to access property. In fact, only 13% of them said they were not ready for the slightest concession, compared to 23% of 25-34 year olds.

Investing in an old property to renovate, a solution for accessing property despite rising rates

In addition, 32% of 18-34 year olds are in favor of buying an older property with work, while 13% say they are ready to buy an energy-intensive but less expensive property. It should also be noted that more than one in two young people would consider buying a property requiring energy renovation, ie 55% of the panel. A figure that reaches 71% among those who plan to buy in the next 12 months.

Young owners, for their part, are 68% in favor of investing in an energy-intensive property to renovate if it would cost them less. An arbitration shared by 52% of tenants, a slightly lower volume but which confirms a real interest in this lever allowing a gain in purchasing power.

A trend confirmed in all regions, which reflects a real interest in an energy renovation approach. A virtuous approach which, if it makes it possible primarily to compensate for a declining purchasing power, would make it possible to gradually renovate the most energy-intensive dwellings of class F and E of the DPE and thus to renew the housing stock in France in the long term.

They are encouraged in this process by their knowledge of the existence of energy renovation aid schemes.

The widely acclaimed tax aid schemes for energy renovation, among the best known: MaPrimeRenov', Le Chèque Energie, and the zero-rate Eco-loan

The survey conducted by Pretto with Yougov also reveals a solid knowledge of the tax systems available to individuals. More than two thirds of young French people know at least one of them for energy renovations. A level of knowledge that rises to 86% for the population of intentionists who plan to buy a property in the next 12 months. Obviously a real estate project is accompanied for these French people by a search for budgetary optimization by means in particular of tax measures.

In pole position, the Ma PrimeRenov' device known to 36% of those questioned, especially in the North-West where 44% of those polled indicated that they were aware of the device. Launched on January 1, 2020, it is one of the most popular tax schemes, accessible to all owners and all housing condominiums built for at least 15 years.

In second position is the Energy Voucher, which nearly 5,8 million households can benefit from, clearly identified by 33% of the panel questioned, followed by the zero-rate Eco-loan or eco-PTZ. An interest-free loan for a maximum amount of €50.000 and granted with no income condition to owner-occupiers or lessors of housing built more than 2 years ago.

On the whole, we observe a good knowledge of the tax systems which confirms the interest of the French for energy renovation and for the solutions that can enable them to amortize the cost of their purchase.

To view the full study: https://www.pretto.fr/presse/etude-millenials-immobilier/