Housing prices far exceed income, young people exhibit four distinct behaviors in the real estate market.

The gap between home prices and income is widening, making home ownership challenging for Millennials and Gen Z. This has led to the formation of distinct real estate consumption behaviors across four groups.

The gap between income and housing prices is widening, leading to the formation of distinct real estate consumption behaviors across four groups - Photo: CONG TRIEU

This was also a topic discussed by real estate experts at the Vietnam Real Estate Conference - VRES 2025, organized by Batdongsan.com.vn on December 11-12 in Ho Chi Minh City.

The effort to own a home: the most numerous but the most arduous.

The real estate market sentiment report for the last quarter of 2025, compiled by Batdongsan.com.vn, was based on a survey of over 1,000 respondents. According to the report, the house price-to-income ratio in Hanoi and Ho Chi Minh City is among the highest in the world , far exceeding the global average of 11.5 times.

In the 18-24 age group, 55% are renting and 42% live with family. Even in the 25-34 age group, nearly half are still unable to own a home. This reflects increasing financial pressure amid rising living costs and continuously escalating property prices.

These reasons have led to the formation of four typical "consumer profiles" in the real estate market, reflecting a clear differentiation in the financial capabilities and market psychology of young people today.

Up to 95% of married people with children want to buy a house in the next 5 years, however, the biggest obstacle remains income. 55% of those with incomes below 30 million VND/month believe house prices are "too high," leading to a significant decrease in confidence in buying a home.

To pursue their goal of owning a home, 29% chose to work part-time, 26% saved money, 23% bought gold, and the majority were willing to borrow from banks (mainly at 30-50% of the property value). Among these options, apartments continued to be the top choice for their first home, with the most important criteria being legal compliance and the developer's reputation.

The survey also noted that demand for housing in Ho Chi Minh City is higher than in Hanoi , thanks to a more diverse supply of lower-priced properties.

58% of young people in Ho Chi Minh City choose to rent long-term instead of facing the pressure of debt. This figure is 42% in Hanoi. - Illustration: CONG TRIEU

The "long-term renters" group: prioritize experiences over permanent residence.

A segment of young people are choosing to rent long-term rather than face the pressure of debt, with 58% in Ho Chi Minh City and 42% in Hanoi of this group being single.

The most common reasons they haven't bought a home yet include wanting flexibility in their living situation, avoiding the burden of long-term loans, and feeling that renting is "more financially efficient." They spend less than 30% of their income on rent each month, prioritizing quality of accommodation, location, and amenities.

Interestingly, only 15% of this group used their savings to invest in real estate, while the majority spent it on travel , experiences, or further education.

Self-owned group: buy when they have sufficient financial resources.

This group consists of people over 35 years old, who are married and buying a home with their personal savings. 56% bought their first home between the ages of 30 and 34, usually after achieving financial stability.

Half of them did not take out a bank loan when buying their first home, relying instead on savings and family support. Among those who did take out loans, the common mortgage payment ratio was 20-40% of household income.

Despite already owning a home, 85% of young people surveyed still plan to buy more property in the next 5 years. Land plots and townhouses continue to be popular choices for investment purposes.

The heirs: already have assets but still want to buy more.

This group has the advantage of already owning townhouses, land plots, or apartments inherited from family. Single people often rent out the properties, while married people either live in them or leave them vacant to preserve the assets.

Notably, 80% indicated they still want to buy more real estate in the next five years, focusing on houses, land plots, and apartments.

The overall picture shows that young Vietnamese people are facing the biggest challenge in years to achieve their dream of owning a home. The differentiation of behavior across four groups indicates that the real estate market is entering a phase of forming new "housing lifestyles," but income pressure and house prices remain central issues without clear solutions.

The biggest barrier: low income and complicated procedures.

Besides persistently high housing prices, the report points to a strong increase in demand for social housing, especially in Hanoi - which leads the country in the number of completed projects during the 2021-2024 period.

However, 70% of respondents believe that the social housing procedures are too complicated, making it difficult to prove eligibility, and nearly half are concerned about competition from speculators.

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Source: https://tuoitre.vn/gia-nha-vuot-xa-thu-nhap-nguoi-tre-chia-thanh-4-nhom-hanh-vi-tren-thi-truong-bat-dong-san-2025121113354258.htm