Why should rental housing be a strategic pillar?

During a meeting with the Party Committee of the Government on the implementation of Directive No. 34-CT/TW of the Party Central Committee on strengthening the Party's leadership over social housing development in the new situation, General Secretary and President To Lam emphasized: Housing for sale is still necessary, but rental housing must be identified as a strategic pillar, especially in large cities, industrial zones, and areas where housing prices far exceed the affordability of the people.

This is a key direction in the design of housing policies in the new phase, aiming to ensure that all citizens have safe, stable, and affordable housing.

For many years, Vietnam's real estate market has primarily operated on the logic of "build to sell," even for social housing. Although the law allows various forms such as buying, lease-to-own, or renting, in reality, the dominant trend remains ownership, and supply cannot meet demand. The mentality of owning a home at all costs leads many young people into a cycle of debt that lasts for decades, while house prices increasingly diverge from actual incomes.

However, Vietnam is still a developing country with a relatively low average per capita income. Therefore, the majority of workers lack the financial resources to own a home in the short term. Meanwhile, the migration of labor to urban areas, industrial zones, and economic centers will continue strongly in the coming years, from unskilled to highly skilled workers. This reality demands the establishment of a stable, safe housing system that suits the needs and affordability of workers, rather than immediately engaging in a race to own a home.

From this perspective, rental housing is essentially part of the labor market infrastructure. Industrial zones will struggle to retain workers if they continue to live in cramped, unsafe accommodations lacking basic infrastructure and services. Technology, finance, and logistics centers will also find it difficult to attract high-quality personnel without suitable rental housing. Therefore, rental housing is not only a matter of social welfare but also becomes a competitive factor in development.

Therefore, rental housing needs to be placed at the center of housing policy in the coming period. With access to fully equipped rental housing at reasonable costs and lease terms, workers can feel secure in their jobs and commit to the factory or company long-term. They also reduce the pressure of taking on debt too early and have more opportunities to save for the future. For migrant workers planning to return to their hometowns after retirement, choosing long-term, stable, and secure rental housing is clearly much more suitable than trying to own a house at all costs.

Many developed countries have followed this approach from a very early stage. In Singapore, the state plays a central role in planning and developing social housing, while maintaining the rental market and tightly controlling speculation. In many European countries, renting is a popular and strongly protected option. This makes the labor market more flexible and reduces the pressure to accumulate assets through real estate.

In Vietnam, developing rental housing faces numerous challenges. Real estate businesses are accustomed to quick sales and rapid capital recovery, while rental housing requires long-term capital and a much slower return on investment. Furthermore, for many people, home ownership is still associated with a sense of security and future stability. Changing this mindset requires time and a different perspective on rental housing – it shouldn't be about minimal, low-quality accommodations, but rather about providing a living space that meets the needs of workers to feel secure and committed to long-term employment.

The General Secretary and President have tasked the Party Committee and the Government with researching and developing a new housing development policy model, consistent with the Constitution, the Party and State policies, and the needs of the people, to be submitted to the National Assembly . Thus, mechanisms for developing rental housing and policies to attract private participation will soon be on the agenda. When appropriate and feasible policies are implemented, the rental housing market will develop professionally and sustainably, contributing to the realization of the goal of ensuring all citizens have safe and stable housing.

Source: https://daibieunhandan.vn/vi-sao-nha-o-cho-thue-phai-la-tru-cot-chien-luoc-10417606.html