The Burrow
Dec 18, 2025
Home ownership looks very different today than it did a decade ago. Markets worldwide have been shaped by evolving housing price trends, shifting demographics, and government policies that significantly impact home ownership growth. For buyers and investors alike, understanding these shifts is crucial.
As property values rise in some regions and stabilise in others, affordability has become the defining factor influencing where people choose to put down their roots. Home loan comparison service Compare the Market decided to take a deeper look into housing growth to identify the best countries to buy a new home. By analysing global data, our global home ownership growth index discovers which nations offer the most promising conditions to own a home today. Our index scores countries out of 100 by combining four key factors – home ownership changes, current ownership levels, house price growth, and affordability – weighted for their impact on ownership growth.
Now, let’s find out which are the best countries to buy a new home. If you are after our 2024 data, you can find it here.
These five countries have emerged as the top choices for prospective homeowners.
South Korea ranks as the best country to buy a home, driven by a strong home ownership rate of 84.8% and notable home ownership growth of 9.99% over the past five years. House prices have risen by only 0.11% in the past 12 months, and the country maintains a balanced, stable market.
With an affordability score of 47.71, South Korea presents favourable conditions for both first-time buyers and buy-to-rent investors, supported by steady demand and a mature housing ecosystem.
Poland stands out in Europe with one of the strongest upward trends in home ownership, recording a 3.83% increase over five years and a high ownership rate of 86.8%! House price trends remain manageable, with a moderate 6.58% annual increase, while its affordability score of 56.01 makes it particularly attractive for younger buyers entering the market.
These conditions, paired with improving economic stability, position Poland as a compelling option for anyone exploring the best countries to buy a home.
Romania maintains one of the highest ownership rates in Europe at 93.9%, making it a dominant home-owning nation despite a slight decline of –1.98% in growth over the last five years. Even with house prices rising 5.19%, affordability remains relatively competitive, reflected in a score of 51.82.
For buyers evaluating house price trends and long-term value in Southeast Europe, Romania remains an appealing prospect for both living and buy-to-rent investment strategies. This appeal is supported by its deeply rooted ownership culture.
Latvia combines steady home ownership growth of 4.49% with a strong ownership rate of 83.8%, making it one of the Baltic region’s most resilient housing markets.
Its house price increase of 6.74% remains moderate compared to neighbouring countries, while an affordability score of 47.16 supports accessibility for a wide range of buyers. These factors place Latvia firmly among the best countries for those seeking stable markets with balanced affordability and long-term potential to buy a home.
Croatia’s impressive home ownership rate of 90.7% highlights a well-established homeowner culture, supported by 1.57% growth over the past five years. However, house prices have surged by 13.09%, one of the highest increases in the top tier.
Even so, with an affordability score of 53.59, Croatia remains an attractive market. This is very much the case for lifestyle buyers and buy-to-rent investors evaluating house price trends across Europe, particularly in popular coastal regions with strong demand.
Across the EU, countries such as Poland, Romania and Latvia demonstrate consistently high home ownership rates paired with modest growth over recent years. Their house price trends, which are typically moderate compared with other regions, suggest markets where ownership remains achievable, particularly for first-time buyers. However, affordability varies, so buyers still need to carefully assess local economic conditions. These countries illustrate how stable growth, steady demand, and manageable price increases can create favourable conditions for both owner-occupiers and buy-to-rent investors.
In Asia, South Korea leads with one of the strongest overall profiles, combining impressive home ownership growth with very low house price increases, showing why it is one of the best countries to buy a home. Japan presents a contrasting picture. While its home ownership rate remains stable, its market is more conservative, with limited growth and more subdued price movements. Together, these examples highlight the diversity of Asian housing markets, where affordability, growth trends, and long-term stability vary significantly between neighbouring economies.
Several countries sit at the lower end of the home ownership index, reflecting markets where buying a home is far less achievable due to structural, economic or affordability constraints.
Switzerland ranks among the most challenging markets, with a low home ownership rate of 42.82% and a five-year change of 0.04%. House price growth over the last 12 months is 4.95% and the country’s affordability score of 36.94 remains quite low, contributing to a score of just 35.34.
Germany shows a similarly constrained landscape. With a home ownership rate of 47.1% and a sharp five-year decline of -7.47%. Its market reflects long-standing preferences for renting and persistent affordability barriers. House prices rose modestly by 3.81% and Germany’s affordability score is 43.59. However, it ranks second-lowest in home ownership growth, with an overall index score of 34.74.
Meanwhile, Colombia faces its own challenges, recording a home ownership rate of 36% alongside a steep five-year decline of -8.40%. Although house prices increased by just 2.75% and affordability sits at 48.83, economic pressures and declining ownership trends combine to make home buying particularly difficult for many Colombians.
Australia presents a more challenging landscape for prospective buyers compared with many other developed nations. With a home ownership rate of 65.8% and zero growth over the past five years, the market shows signs of stagnation rather than the upward momentum seen elsewhere. Although, annual house price growth has eased to 3.47%, improving conditions slightly. Australia’s housing affordability score of 28.00 is one of the lowest among comparable economies and highlights the widening gap between income levels and property prices.
This combination of slow growth, persistent cost pressures and affordability issues results in Australia’s home ownership index score being 51.56. This score places Australia below many European and Asian counterparts, where buyers can access more favourable conditions. For would-be homeowners, this means that entering the market often requires long-term planning and significant savings or exploring alternative pathways. Meanwhile, investors may need to weigh affordability constraints against long-term demand in a high-cost housing environment.
Overall, the global housing landscape reveals a widening divide between regions experiencing steady home ownership growth and those where affordability pressures continue to restrict access. Countries such as South Korea, Poland and Romania show how balanced house price trends, supportive economic conditions and stable demand can create pathways to ownership. Meanwhile, Switzerland, Germany and Colombia demonstrate the challenges that arise when affordability, price dynamics or cultural factors pull in the opposite direction. As housing markets continue to evolve, understanding these differences is essential for buyers, investors and policymakers.
Stephen Zeller, General Manager of Money at Compare the Market, says the data makes one thing clear.
“Sustainable home ownership isn’t just about prices, as creating the right conditions for people to build stable, long-term futures is just as crucial,” he said.
“With affordability shaping where people buy, securing the right home loan is just as critical as finding the right property. Comparing home loan rates can help buyers maximise their budget and improve their chances of securing a property in competitive markets.”
This index ranks countries based on changes in home ownership using four key factors. Each factor was collected from publicly available datasets and normalised to a score between 0 and 1. Where a country had missing data for any factor, a score of 0 was assigned. The normalised scores were then combined to give each country a total score out of 100, and countries were ranked from highest to lowest.
The factors used were:
Percentage-point change in the share of households living in owner-occupied homes over the past decade (typically 2013 to 2023, or the nearest available years). A larger increase indicates stronger ownership growth.
The most recent percentage of households that own their home, either outright or with a mortgage. This provides context for each country’s overall level of home ownership.
The twelve-month percentage change in each country’s House Price Index for 2025. Slower or negative growth is treated as more favourable, as lower price growth improves affordability. This indicator was inverted so that lower values score higher.
To provide a more meaningful measure of affordability, a combined indicator was created using GDP per capita and the cost of housing and utilities. Both metrics were normalised and weighted equally to produce an affordability score. This approach avoids disproportionately favouring lower-income countries, where prices may be lower, but do not reflect real purchasing power or the ability to buy a home.
Factor weightings were as follows:
Index rules:
All data is accurate as of 20 November 2025. Rankings reflect the underlying sources but may not capture every policy, demographic or economic factor affecting home ownership.