Young Thais increasingly rent homes due to high prices

A recent survey by DDproperty reveals that young people are increasingly opting to rent homes rather than buy them due to high prices and insufficient savings. Concerns about managing financial liquidity in an uncertain economy also play a significant role in this trend.

The survey highlights that financial factors are the primary reason why consumers prefer renting. More than half, 56%, reported not having enough savings to purchase a home. Additionally, nearly two in five, or 37%, chose to save money instead because of the high prices, while 36% saw no immediate necessity to buy a home at this time.

This trend indicates that most renters are anxious about managing their financial liquidity in an era of economic uncertainty. To mitigate risk, they avoid buying property and turn to renting, which better fits their financial situation and reduces expenses.

The concept of homeownership among the younger generation is shifting, aligning with the Generation Rent trend. Renting suits their lifestyle and does not impose long-term financial burdens from home purchases. It also offers greater flexibility for future relocations.

Nearly two in five renters, or 39%, plan to rent for two years before considering buying a home. Meanwhile, 29% are uncertain about how long they will continue renting, as they need to reassess other readiness factors. A small percentage, 5%, intend to rent for life.

The most popular rental rate among tenants is up to 5,000 baht per month, with 46% of respondents favouring this range. This reflects the trend of seeking affordable rental housing that fits current financial conditions. The next most popular ranges are 5,001 to 10,000 baht per month at 32%, and 10,001 to 15,000 baht per month at 9%, said the survey.

“The financial uncertainty and high property prices have led many young people to opt for renting as a more viable option. It’s easier to manage monthly rent payments than to commit to a mortgage.”

The data points to a significant shift in housing preferences due to economic challenges and a desire for financial flexibility. Renting provides a practical solution for financial stability, especially in unpredictable economic times. The trend of prioritising saving and maintaining liquidity over the long-term financial commitment of home ownership is becoming more prevalent among the younger demographic, reported KhaoSod.