Fewer Romanians can afford to buy a home, making renting a long-term alternative

Only 73 percent of urban Romanians own their home, significantly below the official 95 percent statistic, according to a survey of 1,000 respondents conducted earlier this year by Unlock Market Research for Colliers. Interest in homeownership has dropped from around 44 percent in previous years to 35 percent in 2025, driven by rising property prices and stricter lending conditions.

Meanwhile, only 6 percent of non-renters plan to move into rented housing, down from approximately 10 percent in past years. The limited supply of new housing and rising costs have shifted renting from a temporary solution to a viable medium-term option. At the same time, tenants are becoming more selective, seeking modern, fully furnished homes with additional amenities, reflecting a notable shift in the residential market dynamics.

In a housing market dominated by homeowners, only 11 percent of city dwellers report living in rented accommodation. In major urban centers, this percentage rises to 15 percent, reflecting a growing openness to renting, as well as a more favorable cost balance between rent and mortgage payments. At the national level, 16 percent of urban residents live with parents, relatives, or friends without owning property or paying rent. This trend highlights both economic challenges and a cultural preference for extended cohabitation.

“Home ownership remains an important goal for most Romanians, but declining affordability in central areas and tight credit conditions have led to a decline in purchase intentions. At the same time, the limited supply of new housing and the shrinking number of housing developments under construction have accelerated price increases, further reducing interest in buying. In this context, renting is no longer a temporary solution but a viable medium-term alternative. Tenants no longer see this option as a compromise, but as an opportunity to live in more spacious or better-located premises that are inaccessible by purchase. This change brings new expectations to the market, from modern furnished apartments to amenities such as parking spaces and easy access to transport and centres of interest”, explains Gabriel Blăniță, Director & Advisory Services at Colliers Romania.

Romanians interested in investing continue to favor the housing market, which is seen as a safe option for long-term capital preservation and growth. Interest in alternative investments remains low, influenced in part by limited financial literacy. The steady rise in residential property prices over the past decade makes real estate an attractive option, but this trend is not a guaranteed outcome. Each investment should be assessed individually, rather than based solely on general market trends. Housing affordability varies significantly by location, with a widening gap between property prices in central, well-connected areas and those on the outskirts. Most developers are shifting towards metropolitan areas, where the ratio of house prices to average wages is more favorable. However, in large cities, high costs are making it increasingly difficult to buy a home in central locations.

Amid these changes, both buyer and tenant behavior continues to adapt to market dynamics. With fewer new-build properties in central locations and rising prices, renting remains an attractive short- to medium-term solution, according to Colliers consultants. However, as interest rates decline and the gap between rents and property prices narrows, homebuying intentions could gradually increase.

“The housing market remains in a delicate balance between demand and affordability, with the decision to buy influenced by both economic and personal factors. A careful evaluation of each option, considering financial resources and long-term prospects, is essential in this evolving property landscape. Romania has one of the highest overcrowding rates in the EU, underscoring the urgent need for housing regardless of economic conditions”, concludes Gabriel Blăniță.