Why Do the French Buy Property Younger Than the Spanish? A Look at Housing Costs and Income Balance

When it comes to buying a first home, the average age in France is 31, significantly younger than in Spain, where it's 41 years old. This disparity in first-time buyer age highlights critical economic factors, particularly the relationship between average salaries and housing costs in each country. Here we explore why France's balanced property prices make it easier for young adults to become homeowners. 

Cost of living vs. property price

Source money.co.uk

One of the main reasons French buyers enter the property market earlier is the relative alignment between income levels and property prices. While French property prices are substantial, they are more proportionate to the average salary, allowing for earlier access to homeownership. In Spain, however, property prices tend to be disconnected from average incomes, with housing costs often being higher compared to earnings. This mismatch requires Spanish residents to save for longer before buying, pushing the average age of first-time buyers much higher.

France: Housing affordability and stability

France’s real estate market offers a balanced environment where property prices generally align with local purchasing power. This stability makes it easier for French residents to plan their finances and invest in real estate earlier in life. Additionally, government-backed mortgage options and stable interest rates in France contribute to affordability, allowing young people to transition from renting to buying sooner. Spain, on the other hand, has seen a more volatile real estate market, impacting affordability and delaying homeownership.

Access to credit and economic policies

In France, favourable loan conditions and accessible mortgage products allow young adults with stable employment to secure loans relatively early. The French government’s supportive housing policies make homeownership more attainable, with incentives like low-interest loans for first-time buyers. Spain has historically had higher loan-to-income ratios and less advantageous terms, which means younger buyers face more challenges in securing affordable financing.

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What this means for foreign buyers

For foreign buyers, the relevance of France’s balanced property-to-income ratio depends greatly on income sources. If a buyer earns income outside of France or Spain, these local affordability metrics may be less critical. However, if they plan to work within the country, France’s alignment of property costs with local salaries can make home ownership more feasible compared to Spain, where average incomes are lower, making it harder for local earners to afford property as quickly. This difference can impact long-term affordability and investment decisions.