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Financial Literacy and Home Ownership: A Quantitative Analysis of the German Real Estate Market

Author

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  • Marotta, Gianfranco

    (Universidad Católica San Antonio de Murcia, Spain; & FOM University of Applied Sciences, Essen, Germany)

  • Kröger, Sebastian

    (FOM University of Applied Sciences, Essen, Germany)

  • Zureck, Alexander

    (FOM University of Applied Sciences, Essen, Germany)

Abstract

Our work uses quantitative empirical analysis to examine the research question of whether a high level of financial literacy influences the purchase of real estate in Germany. Using a binary logistic regression analysis, a significant positive influence was identified based on a sample of 2,149 people. The average financial literacy of the group examined was 3.78 out of 5 points. It is striking that owners in the sample have a higher numeracy score (average: 3.92) compared to non-owners (average: 3.54). The result shows that the probability of owning a home, c. p., increases by 4.58 percentage points when the financial literacy score increases by one unit. Based on these results, policymakers are recommended to take action in order to develop a strategy to promote private pension provision in the form of home ownership.

Suggested Citation

  • Marotta, Gianfranco & Kröger, Sebastian & Zureck, Alexander, 2025. "Financial Literacy and Home Ownership: A Quantitative Analysis of the German Real Estate Market," International Journal of Economics and Financial Issues, Econjournals, vol. 15(5), pages 235-244, August.
    • Handle: RePEc:eco:journ1:v:15:y:2025:i:5:id:19432
    DOI: 10.32479/ijefi.19432
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