Home Start effect: people aged 20-40 now account for more than half of the housing market
The 20-40 age group has reached a record proportion of the market and is now driving home purchases. Based on national data, younger age groups are buying homes with significantly larger floor space than before, and at the same time, they are characterized by increasingly higher spending levels on average, said Péter Szegő, senior analyst at Duna House, according to the company's press release.
Outside the capital, the 30-40 age group accounted for 29% of buyers,
making them the largest buyer group, while the 20-30 age group was the second most active young segment on the market with a 19% share. The data clearly shows that the 30-40 age group is not only the most active, but also has the highest average spending value. The average size of the properties purchased is also highest in this age group (96 m²), which indicates long-term planning and stable home-building behavior.
- 20-30 years: HUF 38.605,000 | 85 m²
- 30-40 years: HUF 58.222,000 | 96 m²
- 40-50 years: HUF 51.245,000 | 84 m²
- 50-60 years: HUF 43.219,000 | 80 m²
- 60+ years: HUF 38.979,000 | 71 m²
It is particularly interesting that 20-30 year olds choose an average floor space of 85 m², which significantly exceeds the entry-level studio preferences of previous years. The targeted and larger-scale purchases of young people are thus noticeably shifting the overall demand structure.
In Budapest, people aged 30-40 accounted for 32% of buyers,
making them by far the largest age group in the capital, while those aged 20-30, in line with the rural proportion, also accounted for 19% of buyers, making them the second most active young group. The proportion of 20-30 year olds has averaged 8-12% in recent years. Even in the first half of this year, it remained at 7-13%, and the proportion jumped in the early autumn months.
The average prices and average property sizes of purchases in the capital clearly show the rise of younger age groups.
- 20-30 years: HUF 64.054,000 | 60 m²
- 30-40 years: HUF 73.310,000 | 66 m²
- 40-50 years: HUF 78.544,000 | 73 m²
- 50-60 years: HUF 78.312,000 | 57 m²
- 60+ years: HUF 75.921,000 | 58 m²
Based on the Budapest data, therefore, 30-40 year olds do not have the highest spending levels, but they remain a stable, strong and dominant customer segment. In contrast, 20-30 year olds purchase an average of 60 m², which is a higher floor space than the entry level in the capital. The 40-50 and 50-60 age groups continue to spend the most, but their share is much lower than that of the younger generations.
"All this means that the consumer market is no longer dominated by the older, traditionally more affluent segment, but rather by the large number of 20-40 year olds with predictable demand," added Péter Szegő.
Cover photo (for illustration purposes only): Getty Images
