Why Gen Z Prefers Renting or Living in Boarding Houses Instead of Buying a Home

In recent years, Generation Z has shown a clear preference for renting apartments, living in boarding houses (kost), or sharing accommodation rather than purchasing a home. This trend is especially visible in urban areas, where property ownership is becoming less common among young adults. Several economic, social, and lifestyle factors explain why Gen Z is more inclined to rent than buy a house.

1. Housing Prices Are Increasing Faster Than Income

One of the main reasons Gen Z avoids buying homes is the rapidly rising cost of property. In many cities, house prices have increased significantly, while entry-level salaries have not kept pace. As a result, owning home feels financially unrealistic for many Gen Z individuals, especially those who are just starting their careers.

2. High Financial Burden and Long-Term Commitment

Buying a house requires a large down payment, long-term mortgage payments, and additional costs such as taxes, maintenance, and insurance. Gen Z tends to be cautious about long-term financial commitments. Renting or living in a boarding house offers lower upfront costs and more financial flexibility.

3. Preference for Flexibility and Mobility

Gen Z values flexibility in both career and lifestyle. Many young people change jobs frequently, pursue freelance or remote work, or move to different cities for better opportunities. Renting makes it easier to relocate without being tied to a fixed property, while homeownership can limit mobility.

4. Urban Lifestyle and Convenience

Most Gen Z individuals prefer living close to workplaces, campuses, public transportation, and entertainment hubs. Renting apartments or kosts in city centers is often more practical than buying a house in suburban areas that require long commuting times.

5. Changing Views on Success and Ownership

Unlike previous generations, Gen Z does not always see homeownership as a primary indicator of success. Experiences, personal growth, mental health, and work-life balance are often prioritized over owning assets. Renting aligns better with these values and allows them to allocate resources to travel, education, or entrepreneurship.

6. Economic Uncertainty

Global economic instability, inflation, and uncertain job markets have also influenced Gen Z’s decisions. Many prefer to avoid large financial risks, such as mortgages, until they feel more secure about their long-term financial future.

Gen Z’s preference for renting or living in boarding houses over buying homes reflects broader changes in economic conditions, lifestyle priorities, and personal values. Rather than rejecting homeownership entirely, many Gen Z individuals see renting as a practical and strategic choice for this stage of their lives. As housing markets and work patterns continue to evolve, these preferences may shape the future of urban living and property ownership.