The Foundation for Affordable Housing is publishing a study: “Entryways to Homeownership” by Dr. Dylan Cassar. This comprehensive analysis takes a sociological angle and reveals the essential role of families in Malta’s housing system. The publication explores how family networks adapt strategies to facilitate homeownership amid rising property prices and evolving market conditions. The study can be found on affordablehousing.mt or can be accessed through this link https://shorturl.at/P8qCR

Through it we understand the need for broader discussions on housing policy and affordability, emphasising the significant yet often overlooked contributions of family networks. The research places Malta within the broader European scenario of housing systems. Malta’s context closely resembles that of Southern European neighbours, where extended family networks are fundamental to housing provision.

The key strategies employed by Maltese families are varied. The study finds that 10% of properties acquired between 2010 and 2020 were gifted by parents, reflecting a shift from market-based purchases to family-provided housing solutions. The acquisition of property via gift or inheritance increased from 10% in the 2000s to 21% in the last decade. This strategy, often involving the redevelopment of family-owned terraced houses into multiple apartments, has enabled younger generations to become homeowners.
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Meanwhile, 59% of young adults (aged 18-34) live with their parents, meaning that Malta has one of the highest co-residence rates in Europe. This arrangement allows young individuals to save money for future down payments and housing costs. This contributes to Malta having a larger homeownership rate when compared to the rest of Europe. Malta’s homeownership rate in 2022 was 82.6%, significantly higher than the European average of 64.1% and other Southern European countries at 75.5%. This social dynamic also provides a safety net for those experiencing marital breakdowns. 

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Financial support from families, through cash transfers and loans, also helps mitigate the challenges of rising property prices and provides higher purchasing power for prospective homeowners. Today, Maltese families are in a better position to assist their offspring in purchasing their household financially. Approximately 26% of Maltese households have received gifts or inheritances, with cash gifts averaging €29,000. ‎

This is an expensive process in itself, and here is where the family in the past stepped in by either providing financial assistance or, more commonly, non-financial support related to the physical labour in the construction of the house.

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Beyond financial support, 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.

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The “Entryways to Homeownership” study underscores the indispensable role of family networks in Malta’s housing market, particularly amid escalating property prices and shifting economic conditions. It highlights the multifaceted support families provide, from financial aid to leveraging social connections, which significantly boosts homeownership rates. As Malta navigates these challenges, recognizing and integrating the contributions of family networks into housing policy discussions will be crucial for fostering a more equitable and sustainable housing market.