Young Vietnamese Turn To Renting As Home Prices Soar
With property prices far outpacing income, Vietnam’s younger generation opts to rent, fueling a surge in demand amid affordability challenges and rigid lending.
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Rising Rental Demand in Vietnam: Why Young People Are Choosing to Rent
In Vietnam’s major cities like Ho Chi Minh City and Hanoi, a growing number of young professionals are giving up the dream of homeownership and choosing to rent instead. With property prices surging well beyond what most can afford, renting has become not just a temporary solution—but a long-term lifestyle choice.
Homeownership Out of Reach for Many Young Workers
Take the case of Hoang Quan, a 32-year-old banker in Ho Chi Minh City. Despite earning 24.5 million VND per month—a relatively high income by local standards—he remains a renter.
“Buying even a basic apartment costs around 3 billion VND. I’d have to borrow at least 2 billion and spend 15–25 years repaying the loan. That means over 60% of my income would go toward debt. I’d rather rent for life and save for retirement,” Quan shared.
His situation isn’t unique. Many young professionals in Vietnam’s urban centers are struggling with the widening gap between income and housing prices. Despite saving diligently, the prospect of owning a home remains distant.
Living Within Means: Renting as a Financial Strategy
Thuy Chi, a 35-year-old working for a financial institution, started saving for a home in her early 20s. But with monthly income of 22 million VND, and rental expenses of 4 million VND, plus living costs and savings, she’s only managed to put away 700 million VND—not even a quarter of what’s needed for a mid-range city apartment.
“Buying a home worth several billion VND just isn’t realistic right now,” she said. “Renting gives me peace of mind and the flexibility to allocate money elsewhere.”
Kim Anh, 28, working in media with a monthly income of 16–18 million VND, echoed the same sentiment. For her, the opportunity cost of homeownership is too high:
“I’d rather invest in self-development and career growth than be tied down by a mortgage.”
Surveys Confirm Shifting Preferences Among Youth
According to research conducted by the Vietnam Association of Realtors (VARs), more than 60% of individuals under the age of 35 in major cities such as Hanoi, Ho Chi Minh City, and Da Nang now prefer renting over buying. For this demographic, renting is not simply a temporary fix but a financially sensible strategy. It offers relief from the burden of long-term debt and aligns with their desire for lifestyle flexibility.
Supporting this trend, data from the real estate portal Batdongsan.com.vn showed that rental searches surged by nearly 22% in 2024. The largest group of searchers fell within the 25–34 age range, representing a significant portion of the market’s demand. Interestingly, even those with monthly incomes between 21 and 40 million VND—typically considered capable of affording home loans—showed a strong preference for renting, with around 42% choosing to seek rental properties rather than purchasing a home.
This pattern illustrates that the desire to rent is not limited to lower-income groups. Instead, it reflects broader concerns about the practicality of homeownership under current economic conditions. With rising home prices, high interest rates, and tightening credit access, even financially stable young professionals are reconsidering the long-held belief that owning a home is the ultimate financial goal.
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