Projecting Demand for Rental Homes in Denmark

For a number of years, homeownership rates have been increasing along with increasing GDP per capita in most European countries, but not in Denmark after 2000. The present paper takes a closer look at the Danish development, and gives some indications of the future demand for rental housing. The results indicate that future rental demand will come from an increasing share of persons of old age and young people in education plus a tendency for more ‘single living’. However, with increasing real incomes for a broad ‘middle-income’ group, the projection gives a higher homeownership rate in the future. It is believed that the structural traits found in the Danish housing market and the technique employed is of interest to housing researchers in other countries.