‘THE Generation Y is more receptive to renting than owning a property,” said KMC MAG group residential leasing consultant Fatima Macalintal.
“The current trends in the Philippines and abroad indicated that Generation Y are more inclined to rent a space in a condominium or a housing unit, rather than buying a unit, in a gated community.” Macalintal noted that people under 35 are shifting from owning to renting. She cited five reasons they prefer to postpone home-ownership following:
- Accessibility, the younger generation prefers to live near the major city hubs and hot spots. They find greater comfort and convenience in living close to commercial business districts (CBDs) and prime locations surrounded by restaurants, shopping centers, entertainment and leisure spots and key real-estate developments like mixed-use urban blocks. They think that it’s more convenient to live near the office sites, business centers and main transport terminals than deal with the metro’s day-to-day monstrous traffic jams. Residential options offer this kind of accessibility in key city locations and CBDs are condo units and apartment buildings. She said that the price is also a major factor. “Houses in prime city locations come at a much-higher price, especially those high-end properties in Metro Manila that cost around P22 to 28 million, as opposed to luxurious condos that may cost around P7 million to P14 million only.”
- Not in the rush to tie the knot. Generation Y do not marry early because they love to move from one job to another. The younger generation are always in search for a new opportunity and want to explore all other options. “They don’t normally settle for one thing, and it seems that they’re in no rush to settle down until they’ve lived their life to the full. That’s why most prefer sharing a residential space (condo unit or apartment) with their roommates than buying a house to live with their partners and start a family,” she said.
- Buying a house is a risky proposition, although they have a higher earning capacity. The younger generation gives priority on travels, vacations, fitness, hobbies and living the life. She said Generation Y thinks investing in property is quite a risk and worry about the long-mortgage. “And since this generation wants to keep their options open, buying a house is met with some reluctance. With the current trends in real estate, renting a swank apartment or posh condominium for the young and successful seems more appealing than settling in a house in suburb or subdivision along with other families,” she said.
- Generation Y wants full amenities and less maintenance. “The availability of resort-type amenities in some condominiums and apartments make renting a condo unit and other residential spaces a better option for the younger generation. “With their fast-paced lifestyle, they take full advantage of the little maintenance required in their rented space. If any part of the unit needs some fixing, this can be handled by the landlord or the property management, especially for common facilities,” Macalintal said.
- Living in a rented space seems more practical. With little time spent here because of their fast-paced lifestyle and hectic workload, younger professionals investing in a house is not practical. Most condominium and apartment units in the city are specially designed to provide the modern comfort and bare necessities. The space may be limited, but all sides and corners are well used to meet the modern lifestyle needs of urban junkies. According to Business dictionary .com (https://www.businessdictionary.com/definition/Generation-Y.html), “Generation Y refers to the people born in the 1980s and early 1990s. Members of Generation Y are often referred to as “echo boomers” because they are the children of parents born during the baby boom.”