Top 5 Countries That Share Differences in Homeownership from America

Homeownership rates are bound to follow diverse economic scales based on different country laws.

Compared to Americans, other countries worldwide do not get economic diversity or a chance to get easy home loans or mortgages.

This causes them to face massive differences in homeownership rates compared to the Americans.

Nevertheless, several countries other than the USA could still attain the highest homeownership rates globally.

For instance, Romania had the highest rate of 96.1 percent in 2020. Later on, Laos and Singapore also marked their place in the business with their best homeownership rates.

Interested in exploring more? Here’s all you need to know,

All About Homeownership: Definition, Purpose, and Procedure

Homeownership is about reserving a new home tenure or buying a new house.

This is an effective way to secure your residential stay, save from rental payments, and build a healthy net worth.

But what makes this entire homeownership approach a challenge is its step-wise processes.

You will have to look out for houses according to your preferences, talk to the property dealers, bargain for the final pricing, apply for a home loan or mortgage, draft agreements, and finalize the property registration.

This entire procedure is part and parcel of homeownership, which is an essential need for every citizen. It will help you secure a safe livelihood, lifestyle, and permanent family residence.

In addition, the procedure to take out a mortgage or home loan is not the same for all areas; the rates for each region are also different.

For instance, mortgage rates in other parts of the world can be quite affordable than the rates in the USA.

Top 5 Countries with Different Homeownership Rates Than the USA

As mentioned earlier, the rates for homeownership programs differ from country to country and state by state.

So, finalizing your property purchase based on the USA rates alone isn’t a good idea.

You can gather an overall knowledge of homeownership rates based on the top 5 countries’ current pricing. We have listed their information below.

1. Romania

Even in today’s time, Romania has topped all the other countries with the highest homeownership rates.

It struck 96.1 percent in 2020 from the rate of 95.8 percent in 2019. Compared to the USA, it’s a good achievement as the USA ranked with a rate of 65.5% in 2021.

2. Singapore

Whereas Romania faced an increase in its homeownership rates in 2020, Singapore went through a decline.

However, the rate wasn’t too less for Singapore. It was 87.9%, according to Statistica, an online journal.

3. Hungary

According to Trading Economics global macro models and expert estimates, the homeownership rate in Hungary will reach about 84.80% at the end of 2022.

4. Cuba

The homeownership percentage in Cuba is 90%, which is a strong sign for investors considering Cuba as their next home.

5. Slovakia

Slovakia has nearly identical homeownership rates to Cuba. With a homeownership percentage of 90.3, the country ranks as one of the world’s top-listed homeownership countries.

America’s Domestic Prices are Expensive

It is said that Americans are facilitated with home loans or mortgages. But their mortgage rates are pretty expensive, especially within the city range, unlike other countries.

Another critical aspect of American homeownership is that home prices are rising faster than previous years.

Many prospective buyers are now driven to property acquisitions because of cheap interest rates and affordable home charges. As a result, the domestic prices in America have also risen.

According to an American housing survey, nearly one out of every ten American homes — over 16 million in total — were “empty” in 2020.

And the rates of vacant homes have increased over the years as citizens were not able to afford the houses. Essentially, all of this results from expensive home prices in the USA.

The Reason Behind Variable Homeownership Rates

Homeownership rates typically reflect a citizen’s general earning stability, allowing them to easily pay their monthly downpayment and manage their home finances simultaneously.

In other words, a rising homeownership rate signals more regional stability.

Affordable interest rates, property sizes, and domestic costs also contribute to the rise in homeownership rates.

It encourages prospective buyers to purchase a new home, which adds to a new homeownership registry and increases the homeownership rate.

Homeownership is not for Everyone: Here’s Why

Not everyone can afford the costs of homeownership. Homeownership entails a significant financial investment.

Besides the home loans or mortgages, a homeowner needs to manage repairing, utility, and other housing expenditures.

Also, a low- to moderate-income cannot pay for all the housing supplies, property tax payments, and fill the credit score required for a home purchase.

Therefore, it’s preferable to avoid homeownership if you don’t have the financial means to manage these issues aside from your daily living expenses.

Some Benefits and Disadvantages of Homeownership

Benefits and Disadvantages of Homeownership

Claiming a new house in your name isn’t as simple as buying regular commodities.

It takes a lot of effort, a persuasive plan and real estate investments, and comes with several benefits and disadvantages down the line.

Hence, you must be aware of all the homeownership’s pro and cons before entering the business. Here are some crucial points that we could gather,

Cons of Owning a House:

  • You will have to save a certain amount of money every month for the home loan or mortgage downpayment.
  • Repairing and utility bills sometimes cost too much that might break your savings.
  • Homeownership is a costly procedure depending on the country you are living in.
  • Mortgage rates might differ and cost higher if you live outside the USA.
  • You will have to agree to a long-term commitment about your residency with the property dealers.
  • Your mortgage rates might be more costly than rental payments depending on your area.
  • Rental payments increase over time.
  • There are property taxes that you will need to fulfill. And this expanse will cost you higher than you pay for your home loan or mortgage rate.

Pros of Homeownership:

  • Your mortgage rate will stay fixed even if the national economic state faces inflation.
  • You can save up money from taxes. There are a few tax breaks that you can use while you are running on home loans. You can even skip property taxes depending on your country’s homeownership law.
  • You have a permanent residence, meaning your condition is more stable.
  • You can save a fixed amount of expense apart from the mortgage down payment.
  • It allows you to customize your home just the way you want.
  • It enables you to build a strong credit history and a wealthy net worth.


Homeownership is the great American dream, but it’s not always attainable.

While homeownership can provide many financial benefits for homebuyers, they should consider consequences and keep some things in mind before purchasing a property.

If you are living outside the USA, you need to acknowledge the differences in homeownsership rates that varies from country to country.

In this article, we’ve already looked at the main factors that affect differences in homeownership rates.

It gives you a better understanding of where you should be looking for real estate in your region and your local market.


1. Why is homeownership important?

Homeownership is the cornerstone of a stable financial future. Home equity accounts for most of a person’s net worth.

The Census Bureau notes that, while retirement accounts play a significant role in individual wealth, the most valuable asset held by most individuals is typically a purchased home.

2. What are the barriers to homeownership?

Not everyone can fit into homeownership as there are high expenses involved.

From property tax to 20% mortgage downpayments and housing expenditures, it takes a lot of investment to support homeownership. you should consider being a homeowner If you can cope with all these barriers.

3. How does homeownership affect the economy?

Homeownership is the common thread running through our economic growth from construction to industry.

Homeowners are also more likely to buy goods and use services in their neighborhoods, which contributes to the economy in a massive range.

4. What is a homeownership voucher?

One of the most common ways to help pay rent is a housing voucher.

Housing vouchers are issued by the government and can be used to pay for different housing types, including public housing, apartments, and even home rentals.

5. What are the social benefits of homeownership?

Homeownership gets you closer to your community and gives you more reasons to be involved. It improves health, decreases crime, and leads to lower welfare dependency.

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