Hoang Quan, 32, works at a bank in HCMC and earns VND24.5 million (US$950) per month, which is above average yet barely covers his expenses as the city’s high costs take a toll.
He has been saving since graduating from university in his early twenties but still cannot afford a home.
He would have to borrow at least VND2 billion to buy a low-end apartment in the city, which can cost VND3 billion, he notes.
“I will have to spend over 60% of my income on loan payments for the next 15-25 years,” he said. “I would rather rent my whole life and save up for retirement.”
Many hard-working young people in major cities have similarly given up on their dream of homeownership and opted to lease.
Thuy Chi, an employee at a finance firm in HCMC, says she had been working toward owning a home by the age of 30 ever since she graduated and began working.
But now, at 35, she only has VND700 million, nowhere near enough to buy a house that costs at least a few billion dong.
But paying VND4 million for rent and VND13 million for living expenses takes up most of her monthly income of VND22 million.
Kim Anh, 28, who works for a media company in HCMC’s District 1, said she earns VND16-18 million per month and might never be able to afford a home in the city.
Spending money on learning and advancing her career seems a much better option than paying off a mortgage, she says.
A survey by real estate trading platform Batdongsan found that the number of searches for residential rentals increased by nearly 22% in 2024, and people aged 25-34 accounted for the lion’s share (62%).
A recent study by the Vietnam Association of Realtors found that more than 60% of people under 35 in Hanoi, HCMC and Da Nang prefer renting over buying homes.
They view it as the most practical solution to avoid financial stress as home prices rise, it said.
The association attributed this to rising prices and a lack of preferential mortgage packages.
Apartment prices in Hanoi, HCMC and Da Nang have risen by 72%, 50% and 34% in the last five years while incomes have only increased by 6-10% a year and now average VND6.8–8.9 million a month.
Buyers who borrow VND1.5-2 billion for a home must pay VND25-60 million a month on average, five to 10 times rents.
Batdongsan quoted more than 41% of renters as saying they cannot afford to buy a home, do not want to be saddled with debt or find monthly rent cheaper than mortgage payments.
A person aged 25-40 who earns as much as the country’s per capita income, estimated at VND9.5 million per month in 2024, would need 26 years to buy a 60-square-meter apartment priced at VND3 billion and assuming a 4.5% interest rate.
Nguyen Van Dinh, the realty association chairman, says taking out a mortgage means young people either have to be burdened by debt for 15-25 years or severely cut back on other spending.
They also face uncertainties as the floating interest rates that take effect after the initial fixed-rate period on mortgages can be unpredictable, he adds.
Nguyen Quoc Anh, deputy CEO of Batdongsan, says besides financial concerns, people’s view of home ownership is also gradually shifting, especially among the younger generations.
Around 28% of renters in the firm’s survey said they choose to rent because they enjoy the flexibility of changing their living environment.
While demand is rising, the realty association points out that the rental market still has many limitations.
Most rental properties are owned and managed by individuals, with little involvement from professional developers, it says.
Tenants might see better prices and services if more developers adopt the build-to-rent model popular in developed countries, it notes.
Vietnam also does not have policies in place to protect the rights of tenants.
Most rental contracts typically last six to twelve months and lack clear terms regarding rent increases, exposing tenants to unstable living arrangements.
The association wants legal regulations to protect tenants such as capping annual rent increases and promoting long-term leases.
