Gen Z focuses on renting, not buying.
Last updated: 6 Aug 2025
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These days, affordability is a challenge for almost everyone. However, for Gen Z, teenagers born between 1996 and 2010, aged 12-27, young adults just starting to build themselves, spanning from school age to the early stages of employment, are facing important life questions such as buying a home and achieving financial security.
Especially in a time of economic uncertainty, uncertain purchasing power, and rising interest rates, especially with rising home prices, this is difficult and potentially beyond reach, even with the best efforts.
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The real estate business outlook for Thailand in 2024 remains challenging. Household debt remains a concern, with rising costs for developers, slow housing market growth due to high interest rates, and financial institution loan denials due to rising non-performing loans (NPLs). According to credit bureau data, one of these is... "Home loans" with bad debts reached 180 billion baht, a 7% increase compared to the previous year's good period.
Only for those priced below 3 million baht, 50-60% of rejections were recorded, and those priced between 4 and 6 million baht saw 30-40% rejections. Meanwhile, market players are becoming more competitive, although perhaps less intense than in the past. They are launching new projects, focusing on developing projects for middle- to upper-class consumers, who are more ready to purchase a home than the more sensitive lower-class consumers or those with less purchasing power.
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This aligns with the findings of RealPage, a leading global provider of software and data analytics for the real estate industry, from a national survey of multifamily renters in the United States. The survey surveyed 2,000 American renters aged 55 and under, with incomes between $20,000 and $200,000, about their rental beliefs and perceptions, and rental expectations. Opinions on search, decision-making, and the most important drivers of the rental experience: technology, requirements, and more.
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51% of Gen Z feel that renting is a better option than buying.
The study found that two-thirds (66%) of multifamily renters are satisfied with their current housing situation, choosing the financial freedom of renting over buying in their preferred location, as well as the flexibility to work remotely and explore new locations. Importantly, 51% of Gen Z renters feel that renting is a better option than buying. This result clearly demonstrates that renting is hot right now, although there are slight differences across age groups in terms of benefits.
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The Generation Rent trend is expanding.
The survey further reinforces the Generation Rent trend, not just in Thailand but globally. When everyone shares the same goal, the renting trend is born. Generation Rent is a term used to describe people around Gen Y and Gen Z.
The origins of Generation Rent stem from the collapse of the housing market in those countries, where house prices have skyrocketed since 2002, making it impossible for young people to afford homes.
Many analysts agree that One of the main reasons why young people choose to own their own homes is due to the "social structure," particularly "income," which is in tandem with "housing prices." This makes owning a home increasingly difficult. Many countries are also facing similar challenges.
For example, in the United Kingdom, those aged 35-44 are three times more likely to rent for more than 20 years due to soaring housing prices. Meanwhile, GDP per capita has been declining since 2007.
In Hong Kong, the world's most expensive housing market, house prices fell to their lowest point in nearly seven years in 2023. High interest rates have led to a decrease in consumer interest in buying a home and consumers are opting to rent instead. This has led to continued increases in rent prices.
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The resale home market may be an alternative.
In Thailand, data from the Real Estate Information Center (REIC) indicates that the resale home market began to expand significantly in 2022. This is because the government offered buyers the opportunity to receive a discount on transfer and mortgage fees, continuing through 2023. This may be due to the rising cost of new homes in desirable locations or the lack of availability.
As purchasing power has stagnated and people are seeking locations that are not too far away and do not increase their transportation costs, resale homes are a suitable option. Their prices are 20-30% lower than new homes in the same location, increasing their appeal.
However, the REIC predicts that in 2024, the transfer rate of resale homes may decline due to the economic situation and the country's housing purchasing power due to various negative factors, as well as the overall housing market.
___________________________________________
Stimulating purchasing power, alleviating the burden on homeowners
The current home-affordability crisis for new homebuyers has left behind shattered dreams and missed opportunities, as housing prices continue to rise at an alarming rate, coupled with stagnant wages. Achieving the goal of homeownership is becoming increasingly difficult. Unless the government stimulates the real estate sector to encourage more people to own homes.
___________________________________________
Thank you for the article source from Thansettakij.
Especially in a time of economic uncertainty, uncertain purchasing power, and rising interest rates, especially with rising home prices, this is difficult and potentially beyond reach, even with the best efforts.
___________________________________________
The real estate business outlook for Thailand in 2024 remains challenging. Household debt remains a concern, with rising costs for developers, slow housing market growth due to high interest rates, and financial institution loan denials due to rising non-performing loans (NPLs). According to credit bureau data, one of these is... "Home loans" with bad debts reached 180 billion baht, a 7% increase compared to the previous year's good period.
Only for those priced below 3 million baht, 50-60% of rejections were recorded, and those priced between 4 and 6 million baht saw 30-40% rejections. Meanwhile, market players are becoming more competitive, although perhaps less intense than in the past. They are launching new projects, focusing on developing projects for middle- to upper-class consumers, who are more ready to purchase a home than the more sensitive lower-class consumers or those with less purchasing power.
___________________________________________
This aligns with the findings of RealPage, a leading global provider of software and data analytics for the real estate industry, from a national survey of multifamily renters in the United States. The survey surveyed 2,000 American renters aged 55 and under, with incomes between $20,000 and $200,000, about their rental beliefs and perceptions, and rental expectations. Opinions on search, decision-making, and the most important drivers of the rental experience: technology, requirements, and more.
___________________________________________
51% of Gen Z feel that renting is a better option than buying.
The study found that two-thirds (66%) of multifamily renters are satisfied with their current housing situation, choosing the financial freedom of renting over buying in their preferred location, as well as the flexibility to work remotely and explore new locations. Importantly, 51% of Gen Z renters feel that renting is a better option than buying. This result clearly demonstrates that renting is hot right now, although there are slight differences across age groups in terms of benefits.
___________________________________________
The Generation Rent trend is expanding.
The survey further reinforces the Generation Rent trend, not just in Thailand but globally. When everyone shares the same goal, the renting trend is born. Generation Rent is a term used to describe people around Gen Y and Gen Z.
The origins of Generation Rent stem from the collapse of the housing market in those countries, where house prices have skyrocketed since 2002, making it impossible for young people to afford homes.
Many analysts agree that One of the main reasons why young people choose to own their own homes is due to the "social structure," particularly "income," which is in tandem with "housing prices." This makes owning a home increasingly difficult. Many countries are also facing similar challenges.
For example, in the United Kingdom, those aged 35-44 are three times more likely to rent for more than 20 years due to soaring housing prices. Meanwhile, GDP per capita has been declining since 2007.
In Hong Kong, the world's most expensive housing market, house prices fell to their lowest point in nearly seven years in 2023. High interest rates have led to a decrease in consumer interest in buying a home and consumers are opting to rent instead. This has led to continued increases in rent prices.
___________________________________________
The resale home market may be an alternative.
In Thailand, data from the Real Estate Information Center (REIC) indicates that the resale home market began to expand significantly in 2022. This is because the government offered buyers the opportunity to receive a discount on transfer and mortgage fees, continuing through 2023. This may be due to the rising cost of new homes in desirable locations or the lack of availability.
As purchasing power has stagnated and people are seeking locations that are not too far away and do not increase their transportation costs, resale homes are a suitable option. Their prices are 20-30% lower than new homes in the same location, increasing their appeal.
However, the REIC predicts that in 2024, the transfer rate of resale homes may decline due to the economic situation and the country's housing purchasing power due to various negative factors, as well as the overall housing market.
___________________________________________
Stimulating purchasing power, alleviating the burden on homeowners
The current home-affordability crisis for new homebuyers has left behind shattered dreams and missed opportunities, as housing prices continue to rise at an alarming rate, coupled with stagnant wages. Achieving the goal of homeownership is becoming increasingly difficult. Unless the government stimulates the real estate sector to encourage more people to own homes.
___________________________________________
Thank you for the article source from Thansettakij.
