Millennials vs Gen Z Home Buying: The dream of buying a house has become old; 46% youth are now choosing ‘rental house’ instead of heavy EMI, a big revelation in NoBroker’s report – ..

In India, having one’s own home has always been considered the biggest measure of success and social security. The biggest dream of the parents’ generation was to build their own house once in their life. But today’s modern young generation—Millennials and Gen Z professionals—are completely changing this old and traditional thinking. Now instead of youth getting trapped in the mental and financial burden of paying huge home loan installments (EMIs) for 20-30 years, ‘Financial Freedom’ Are giving more importance to.

Famous property tech platform NoBroker According to the latest data released by the country’s 46 percent tenants Now we are considering living in a rented house for a long time as our best and wisest option. This changing trend includes 53 percent professionals aged between 25 to 34 years and 48 percent professionals aged between 35 to 44 years, who clearly say that they will continue to live in a rented house instead of buying a house in the future.

House rent is falling to half due to heavy EMI: understand the math

The main reason behind this big U-turn of the youth is the skyrocketing house prices in the metros and their unbearable financial burden. Home loan installments in major tech and commercial cities of the country have become more than double the actual rents there.

• Jump in EMI-to-rent ratio: In the last five years, this ratio has increased from 1.86 in Gurugram of Delhi-NCR. 2.68 are done. Same is the condition of tech hub Bengaluru (2.38), Hyderabad (2.47) and the country’s financial capital Mumbai (2.19).

• Simple example: What this means in simple words is that if you live in a posh area ₹50,000 per month rent If you are living at a house, then to buy the same house, you will have to pay every month apart from the down payment. Monthly EMI of more than ₹1 lakh Will have to be paid.

• Smart Investment: Today’s youth, instead of investing all their savings in lump sum down payment and paying huge EMIs, are investing that huge amount in the stock market and mutual funds. According to a 31-year-old software professional from Bengaluru, it is better to invest the money rather than gamble with EMIs of ₹1 lakh every month for 20 years, so that one can have complete freedom to change cities whenever one wants as per one’s career.

No compromise with lifestyle and luxury

For today’s young generation, living on rent has not become a helplessness or compulsion, but a very thoughtful and conscious financial decision. They are not living on rent just because they do not have money, but they want to make their lifestyle better (Premium Lifestyle) with that money.

• Demand for premium and bigger houses: Today’s professionals prefer to live in premium residential projects with amenities like large homes, modern gated societies, fully furnished apartments and club houses.

• Condition of Bengaluru and Mumbai: Despite high rents in Bengaluru, demand for 3-BHK flats continues to exceed supply. At the same time, almost one third (33%) of the total rental demand in Mumbai Metropolitan Region (MMR) is from luxury homes whose monthly rent is Rs. More than ₹40,000 Is. In the words of a marketing professional from Mumbai, owning a home may be a goal, but for this they do not want to compromise with their current financial freedom and comforts.

Changing career graph and boom in rental market

Behind this changed mood of the youth is their rapidly changing career graph. Due to frequent job changes in the corporate world, work from home or hybrid work culture, and increasing awareness about financial planning, professionals do not want to take the risk of buying a permanent property until they are completely settled in their life and career. Due to this attitude of the youth, the rental market in the metropolitan cities of the country is growing at a record fast today and home owners are making money.