The Rising Cost of Homeownership in Vietnam's Major Cities

Hoang Quan, a 32-year-old bank employee in HCMC, exemplifies the growing trend among young professionals. Despite earning an above-average salary of VND24.5 million (US$950) per month, the dream of owning a home remains elusive. "I would have to spend over 60% of my income on loan payments for the next 15-25 years," he shares, opting instead to rent and save for retirement.

A Shift in Priorities Among the Youth

Thuy Chi, 35, and Kim Anh, 28, echo Quan's sentiments. With living expenses consuming the majority of their incomes, the prospect of homeownership seems increasingly unattainable. Many are prioritizing career advancement and personal growth over the financial strain of a mortgage.

The Surge in Rental Demand

Recent surveys highlight a 22% increase in searches for rental properties, with 62% of queries coming from individuals aged 25-34. Over 60% of young people in Hanoi, HCMC, and Da Nang now prefer renting, citing financial flexibility and the avoidance of debt as key reasons.

Challenges in the Rental Market

Despite the growing demand, the rental market faces significant hurdles. The lack of professional management and tenant protections poses risks for renters, prompting calls for regulatory reforms to ensure stability and fairness in the housing market.