Gen Z Prefers Renting to Buying a Home, Fahri Hamzah: A Global Phenomenon

Gen Z, or the Z generation, are increasingly choosing to rent instead of buying a home or property. In response to this, Fahri Hamzah, Deputy Minister of Housing and Settlements (PKP), says the trend is also observed in many major cities around the world. According to Fahri, the choice to reside in a rented home is a logical consequence of the dynamics of the modern working world. He explained that young people in career transition tend to be reluctant to be tied to permanent home ownership. ‘Actually, the urban phenomenon globally is like that too. Because people are in transition when they work, they prefer to rent,’ Fahri said at the Office of the Governor of South Sulawesi, on Friday (6/3). He also highlighted job mobility as the main reason behind the preference. Gen Z, known for adapting to change, often demands housing flexibility in line with professions that require them to move locations. ‘One reason is because they know their job requires them to move from one place to another,’ he said. In response to this trend, Fahri urged local governments in major cities to seriously develop the rental property market. He stressed that the concept of rental housing is not a second-class solution but an urban necessity that must be facilitated by proper policy. ‘So yes, the rental market must be prepared with alternatives. If the government wants to improve housing in Makassar, the concept is rental,’ he said. Interestingly, Fahri cited how rental housing can become a political engine in a superpower country. He pointed to Zohran Mamdani’s victory in the New York City mayoral election, USA, which was partly supported by his success in championing the issue of the rental housing market. ‘That is why the New York City mayor won because of the rental housing market warfare. Well, that is what we must fix going forward,’ he said. This statement also serves as a reminder that amid the onslaught of commercial property, the rental housing sector holds significant potential to meet the needs of millennials and Gen Z in urban areas. In addition to social aspects, the housing sector is also seen as playing a strategic role in driving regional economic growth.