As property prices keep soaring, the number of homeowners is declining, with a significant drop registered in just four years between 2017 and 2021. A report on household wealth published recently by the Central Bank of Malta shows that in the Southern Harbour region two from every five live in a rented property. On the other hand, the highest rate of home ownership is in Gozo where nine out ten are either outright owners or else are still paying the mortgage.

During the period under review the percentage of single-person households increased in most regions, especially the North and Southern Harbour where this cohort rose by 14.5% and 11.5% to 26.7% and 41.4%.

Regarding housing status, the highest number of outright property owners in 2021 was in Gozo with 70.3% while a further 18.9% have a mortgage. This results in an overall ownership rate of 89.2%.

A contrasting picture emerges in the Southern Harbour region whereby the number of outright owners has fallen below the midpoint at 48.5% with 12.5% paying a mortgage.  Consequently, this region has the highest share of renters with 39.1%.

As for the rest of the island, property ownership remains strong, with the overall rate hovering between 75% and 91% in the South Easter Region. However, the share of outright owners here is 62.1% which is significantly less than in Gozo.

The Northern region saw a notable shift, with a decrease of almost 15 percentage points in the share of outright owners and a rise of around 9% in mortgaged owners.

The report also focuses on household debt. The median value of total debt in 2020 was €45,000, that is, a 12.5% increase since 2017. The most common type of debt is in the form of mortgages, making up 88.4% of total liabilities in 2020.

In 2020, Gozo’s median debt level was €31,000, nearly half that of the Northern and Southern Harbour regions, which were the most indebted in the country, each with a median total liability of €60,000. Notably, Gozo saw a dramatic change from 2017, when it was the most indebted region in Malta, with a median liability of €80,000. This represents a 61.4% reduction in debt over the period. No reason was given for this dramatic drop. 

Propertiy remain top contributor to household assets

The value of total assets across Malta has increased since the 2017 survey. Real assets, particularly real estate properties, continue to be key determinants of household wealth, accounting for over 90% of real assets in the Maltese Islands in 2020. Among the various regions, Gozo has maintained its historical status as one of the wealthiest regions in Malta. However, despite the widespread increase in property prices, the growth rate of total assets in Gozo has been slower than in most other regions. A key reason for this is the general decline in average dwelling size, as households transition from larger, often multistorey houses to smaller apartments. This trend applies not only to primary residences but also to second properties.

While household debt has increased across Malta, the median debt value for Gozitan households remains below the national average. This is due to a significant reduction both in the value of debt, as well as a low share of indebted households in the region. In general, mortgage debt remains the main component of total debt in Malta, accounting for more than 80% in all regions. This high percentage underscores the critical role of property acquisition and homeownership in Malta.