Around 59% of Maltese people aged 18 to 34 live with their parents, according to research by the Foundation for Affordable Housing.
Malta's co-residence rate is one of the highest in Europe, however, since it allows younger people to save money, it also leads to a higher homeownership rate when compared to the rest of the continent.
In 2022, Malta's homeownership rate stood at 82.6% - compared to the European average of 64.1% and the Southern European average of 75.5%.
The findings were published in Entryways to Homeownership by the Foundation for Affordable Housing, a social enterprise that aims to provide sustainable market solutions for today’s housing market.
The publication emphasises the crucial role of the family in Malta's housing system and explores how family networks adapt strategies to facilitate homeownership amid rising property prices.
It notes that while some young people rely on their families for accommodation to save up: 10% of properties acquired between 2010 and 2020 were gifted by parents.
The percentage of property acquisitions via gift or inheritance more than doubled from 10% in the 2000s to 21% in the last decade.
Financial support from families, through cash transfers and loans, helps mitigate the challenges of rising property prices and provides prospective homeowners with higher purchasing power, according to the report.
Beyond financial aid, families leverage social networks to connect prospective homeowners with skilled professionals in the housing industry.
This access can lead to financial benefits, such as favourable loan terms or reduced fees, and supports new homeowners through the intergenerational transfer of skills and expertise.
The report also highlights the historical context, noting that past initiatives led by the state and the Church significantly boosted homeownership in Malta by offering land at reduced prices and subsidising loans for home construction.
However, due to the depletion of undeveloped land and reduced direct involvement from the state and Church, there is now a greater reliance on familial support, exacerbating wealth inequality in access to housing.
Last year, a report by the accounting firm KPMG found that young, single people on an average income cannot afford 95% of properties on the market.
Recognising the need to address these challenges, the Foundation for Affordable Housing introduced LoanUp, a program offering subsidised loan rates to improve housing affordability.
This initiative aims to reduce barriers to accessing the housing market and provide innovative solutions to Malta’s housing affordability crisis.