Homeowners representing more than 60% of the population benefited from increased house prices
Economic inequality in the Eurozone is narrowing according to the European Central Bank (ECB). According to her research ECBthe gap between households in the top 5% and those in the bottom 50% has narrowed over the past five years, thanks to a big rise in house prices.
This development is attributed by the ECB to the significant increase in the net wealth of euro area households, as recorded in the national accounts over the last five years, as owners real estate, representing more than 60% of the population, benefited from increased house prices.
According to this new experimental statistical visualization from the ECB, the net worth of home owners has increased by 27% over the past five years, while the net worth of non-home owners has increased by 17%, mainly due to the increase in deposits seen this year. period, was reported to APE BEE.
“The significant rise in euro area household net wealth seen in the national accounts over the past five years (29% or around €13.7 trillion) has been accompanied by a slight decline in inequality, partly because homeowners, who represent more than 60% of the population, benefited from rising property prices. Their net worth (per household) increased by 27% during this period. At the same time, the net wealth of non-home owners, who make up 40% of the population, increased by 17%, mainly due to the increase in deposits observed during this period,” the ECB says characteristically.
These figures have not taken into account the effects of the recent decline in house prices seen in many eurozone countries.
