India’s Gen Z prefers to rent rather than buy

As Baby Boomers, Gen X and millennials prefer to buy homes in India, Gen Z shows a notable difference and lean towards renting a place, according to a report.

Baby boomers favour investments but millennials prefer to upgrade their property and the reasons for purchasing a home show distinct generational difference, according to a Knight Frank report.

About 79 per cent of Baby Boomers, 80 per cent of Gen X and 82 per cent of Millennials favour homeownership, while among Gen Z, only 71 per cent prefer to own a home and a high 27 per cent leaning towards renting.

Millennials (39 per cent) and Gen Z (36 per cent) are leading the trend of upgrading and purchasing for end-use, while Baby Boomers display a stronger interest in investments (29 per cent) and retirement plans (15 per cent).

Overall, 37 per cent of respondents are upgrading to a better home, reflecting a growing shift towards mid-range and luxury housing which was traditionally concentrated in select cities but is now expanding to Tier 1 cities in India. The remaining 32 per cent are first-time homebuyers for end-use, 25 per cent are investing and 7 per cent cite other reasons, such as retirement or acquiring a second home or vacation home, the report mentioned.