Chile: 65% of people own a home, 36% plan to buy one soon

RIO DE JANEIRO, BRAZIL – Amid the harsh effects on the housing market derived from the sustained rise in inflation and the increase in mortgage rates, a Cadem survey revealed Chileans’ current perceptions and options in real estate matters.

The survey, which is part of the series “El Chile que viene” (“Chile to come”) and which was carried out between Monday 7 and Wednesday 9 January 2022 based on 2,318 online interviews throughout the country, revealed that 65% of Chileans own their own home (with full or pending payment) and 25% currently rent a home.

According to the latest Eurostat data, while 75% of the population owns a home in Spain, this figure drops to 55% and 50% in Austria and Germany, respectively.

The survey also shows that 36% of those surveyed have plans to buy a home in the short term. Within this group, 63% have started or already have savings to purchase real estate.

The Cadem study also reveals that almost 60% of those surveyed say they are very or somewhat satisfied with their home. The happiest are the highest socioeconomic segments (78%), homeowners (69%), and people without children (69%). On the other hand, the least satisfied are the lowest socioeconomic segments (only 48% satisfaction) and those who live in a rented property (40%).

“The dwelling size is a differentiating aspect for those who live in a house. On the other hand, those who live in an apartment feel more satisfied with the location, the proximity to commerce, the quality of the materials used in their homes, and the proximity to public services”, states the Cadem study.

The survey also found that 98% of those surveyed believe that housing prices are rising, mainly due to the increase in mortgage interest rates (57%), economic instability (42%), inflation (41%), and the rise in construction prices (41%). “Thus, the study clearly shows us how the effects of the crisis, retirements, inflation, are already issues that have strongly permeated the perception of Chileans,” says Karen Thal, general manager of Cadem.

Concerning the aspects most valued by the population when buying a home, the Cadem survey highlights the issues of security, quality, and price.

In any case, the fact that the house is located in a safe sector is significantly more mentioned by those who would buy an apartment (85% vs. 74% among those who would buy a house).

It is also relevant that the construction of the house is of good quality (59% would buy a house and 54% would buy an apartment) and that the price is in line with the possibilities (62% vs. 56%).

“The results show us that security has been installed as a leading issue in the minds of Chileans. When choosing a house, the fact that it is in a safe and quiet area appears as the most important attribute for people,” concludes Karen Thal.