Borrowing alone is a heavier burden, yet 42% of buyers opt for their own home

The share of homes bought by singles is increasing. This is evident from an analysis of Belgian real estate transactions by Fednot, the professional federation of notaries. Last year, 42 percent of home purchases were made by singles. In 2024, that was 40 percent. Fednot assumes that a home was bought by a single person when the purchase was made by one person, regardless of their civil status. The federation speaks of a couple when the home is officially purchased by two people, also regardless of their civil status. In Flanders, the share of home purchases by singles was 39 percent last year, and in Wallonia 45 percent. In Brussels, more than half of all home purchases (52%) were made by singles.

Masses of candidates

Those entering the real estate market alone more often choose an apartment. More than half of all apartments (57%) sold last year went to a single person. In Flanders, that share was 55 percent. In Brussels and Wallonia, it was even higher, at 61 percent and 64 percent respectively. For houses, single buyers accounted for a share of 35 percent. Although the number of singles in our country has been increasing for years—according to Statbel, Belgium had 36 percent single-person households last year—other factors also play a role in the shift in the real estate market. "The severe scarcity on the rental market forces singles towards the buying market," says Cedric Vanhencxthoven, director at Heylen Vastgoed. "Renting something as a single person is enormously difficult today. For the homes we put up for rent, we always see masses of candidates. Landlords more often choose double-income couples because they are looking for financial security and stability. But because of this, as a single person, you are almost forced to the buying market."

The buying market is also adapting to the increasing number of smaller families, Vanhencxthoven notes. "In new construction, more and more development is geared towards diverse family compositions. This results in smaller units in budget categories that are interesting for singles." "At the same time, we see people who, after a breakup, prefer to buy something for themselves out of a certain principle of security. They want something to fall back on, even if a new relationship were to happen. This way, in the event of a breakup, they are not faced with another stressful search."

Young singles

Among singles, younger buyers in the 26 to 30 age group are particularly active. For apartments, they make up almost a quarter (24%) of all single buyers, while among couples, all ages are more evenly represented. In Flanders, a single person paid an average of 300,451 euros for a home last year. For couples, that was 394,526 euros. Looking solely at apartments, the average for a single person was 267,689 euros, and for a couple 310,681 euros. "The more people who sign the deed of purchase, the higher the price," says notary Bart van Opstal of Fednot. "Typically, singles tend to buy apartments because they are often smaller and cheaper than a house. The fact that couples invest more money in an apartment on average obviously has to do with their greater borrowing capacity."

Higher personal contribution

"Singles have a higher risk profile for banks," says Vanhencxthoven. "If one income is lost in a couple, there is still one left. Because of this, banks are sometimes stricter towards singles. They will, for example, have to guarantee a higher personal contribution." In addition, singles have a higher repayment burden. At BNP Paribas Fortis, which saw the number of mortgage loans with a single borrower increase last year, an average of 39 percent of singles' income goes towards loans. The bank, which is the market leader in home loans, applies a maximum debt ratio of 40 percent. For young people under 30, the repayment burden is lower on average (37%), just like for those over 55 (35%). Singles also borrow over a longer term on average (258 months) than the overall average (238 months), according to BNP Paribas Fortis. Although singles with a loan-to-value ratio of 70 percent—the part of the purchase price that can be financed with a loan—did bring in more personal equity than young buyers. "Banks must remain vigilant regarding the extension of loan terms or the increase in the debt burden," said Laurent Loncke, head of retail banking at BNP Paribas Fortis, early this year at the presentation of the figures. "This evolution has been ongoing for several years. I don't see a change coming in the short term," concludes Vanhencxthoven. "At the root is the housing shortage. This can only be solved by creating more supply, but the permitting issue, among other things, remains a major problem. To stimulate supply and get affordability under control, a turbo needs to be applied to fulfill the housing need."

Source: De Tijd