Expensive property and high cost of living could be one of the factors as to why Malta is seeing a decrease in its fertility rate, one PL MP said on Monday. 

Speaking in Parliament, Omar Farrugia referred to recent Eurostat figures, which show that Malta has the lowest fertility rate in Europe, at 1.13 live births per woman. 

Malta’s fertility rate has been on a downward trend since 2012, when it stood at 1.42, with particularly sharp decreases between 2017 and 2019. 

“I believe the major reason behind this figure is because of the affordability to raise children,” he said. 

“Today, the financial expense to have children is not small. You not only have to look at the loan you pay, but we also see a huge increase in prices of medicines for children, food and even milk for children.”

“Does the family have enough disposable income to live in a relaxed environment and have one or two children?” he asked.

The reality is that it has become difficult to have children in this day and age, Farrugia fears.

“And we are a traditional culture with a culture that focuses on strong family values, and that is why it feels like it is a huge failure that we are one of the lowest birth rates in Europe."

Farrugia said the country needed to work out how to improve its low fertility rate.  

"Have we started to think about how we can improve our birth rates so that the dependency is reduced in the future? So that in the future the Maltese economy will be sustainable without the need of importing workers," he asked. 

A low fertility rate leads to an ageing population, with fewer working-age individuals and more elderly people. That, in turn, places strains on pensions and healthcare systems, which cost countries more the older their populations grow. 

Expensive property prices delays youths moving out

In his speech, Farrugia placed significant emphasis on the challenges that rising property prices bring with them.

Local property prices continued their steady rise last year, with asking prices up 5.3 per cent in the last quarter of 2022, according to KPMG. A study by the consultancy firm found that median-income households cannot afford standard properties at current prices.  

“If you buy a property at 27 or 28, you start thinking about your future, and one question comes to mind,” he said. “Is this place I am about to make an investment, good enough to start a family?”

He pointed out that Maltese youths take a while to leave home, but it is not because “we are Mediterranean and comfortable with our family”. 

Labour MP Omar Farrugia.

Many entry-level properties on the market are not good enough for long-term planning, the MP argued, with young couples therefore taking longer to look for the right property to purchase. 

“A one-bedroom studio apartment might be good for a 20-year-old, but not that much for when that person turns 40,” he said.

High property prices are a global issue, and locally developers argue that prices are rising at a rate similar to the EU average and that housing remains affordable relative to income. 

But while people abroad can find cheaper properties by moving further away from cities and urban centres, local buyers do not have any such options, Farrugia noted. 

“In Malta, we do not experience this at all. This is an issue for youths, not youths who struggle financially, but all types of youths on our island.”

He dismissed the argument that a young person can rent in the meantime before purchasing a property, arguing that a person paying a monthly rent could ill afford to save the money to buy their own home. 

Farrugia pointed out that the government is addressing the high property issues, and that more needs to be done to aid those youths who want to purchase a property and start a family. 

Earlier on Monday, the government announced that it was raising the ceiling of a home deposit aid scheme to €22,500. The scheme allows first-time buyers to get an interest-free loan to cover the down payment cost when buying a property.