The Rental Experience as the New Normal
Updated: Nov 15, 2022
If you ask your parents -or grandparents- whether they would choose to rent a home or to buy a home if they were your age, chances are they will always choose the latter. In fact, it is quite probable that you will be scolded for even considering the possibility of renting a home! According to the Urban Institute, originally founded by President Lyndon B Johnson (1968); “The homeownership rate (USA) for each age group younger than 75 will decline dramatically over the next two decades.” In fact, if we look at the younger generations, “the homebuying rate in the prime homebuying years (ages 25 to 44) will decline by 6.5 to 9.0 percentage points between the boomers and younger generations.”
So, why is home ownership declining? Why this shift in the way we live, and the way we approach rentals, mortgages, and purchasing of land & property.
Through years of investigation and investing in the housing/multifamily market, our company has found that the shift in the trend is primarily led by urbanization, rising housing prices, and high levels of student debt. For millennials, adulthood is becoming less about milestones and more about moments, with the desire to have flexibility to “figure things out” rather than be tied into substantial commitments that reduce mobility.
Let’s look at a practical scenario to explain this shift. Rita (24) just finished University in Bangkok. She is a single, independent, and modern woman. She also graduated top of her class in engineering, and landed a great starting job at a water treatment facility near Bangkok. Now, let’s ask ourselves a couple of questions: what motivates Rita’s lifestyle? What are Rita’s possibilities -in terms of housing?
1 – Sustainability as a key driver. She is working at a water treatment plant, so she must have some desire to make the world a better (more hospitable place).
She just graduated, so her starting salary won’t be very robust (yet!). Therefore, 2 – Affordability as a key component of her decision making.
3 – Time & Flexibility. Rita is single, young, and doesn’t have much help at hand. She needs to live and manage a place by herself. Wouldn’t it be amazing if she could find a place that has -for example- weekly housekeeping and maintenance included in her agreement? If Rita were to tie herself up with a 20-year mortgage to purchase a home, she will probably find herself tied to Bangkok for the rest of her life
So, as one can conclude: the idea of purchasing a home (at a high price), at a young age, at the cost of getting locked in to a specific experience and location is not very appealing to Rita.
At HOMA we are tailoring our offering for people just like Rita. We have affordable condos and apartments for rent, all of which weekly housekeeping, and many other perks included in the price! We have state-of-the-art facilities (such as a brand new co-working floor) that make the experience of living at our properties a “one stop solution” for anyone looking to work from home. At HOMA we don’t only believe in sustainability, we act upon it. We are the first residential apartment buildings for rent in Thailand that will have both LEED and EDGE certifications. If your previous home-search has been painful, and you are looking for something like Rita is, then visit us at homa.co. Experience a hassle-free rental experience, and explore the benefits of becoming a long-term resident at HOMA!
