Not Just a Trend: Why 75% of Gen Z Prefer Renting

Gen Z isn’t buying houses—here’s why they’re choosing to rent instead.

Buying a house at a young age is becoming less realistic for Gen Z. Property and land prices in big cities continue to soar, while income growth can’t keep up. This global issue has made renting a smarter, more flexible choice for the younger generation.

According to Business Insider, only 24% of first-time homebuyers in the U.S. are Gen Z—a 50% drop since 2010. Meanwhile, 75% of Gen Z consider renting a better financial decision, and 83% see it as a way to save for life experiences. This is exactly what Jessica Castello and Varrel Vendira, Rukita tenants who moved to Jakarta for work, have experienced.

Jessica, a Product Manager at a bank in Kuningan, South Jakarta, chooses to rent for financial and lifestyle flexibility. “Buying property in Jakarta is tough for Gen Z just starting their careers. A long-term mortgage feels restrictive when what we value most is freedom,” said Jessica, who has lived in Rukita Rukosta Jelambar for two years.

Varrel, a 26-year-old HR professional at an e-commerce company, shares the same view, “Renting makes more sense for us. With rent equivalent to a mortgage payment, I can live in the city center. If I buy, I’d have to settle on the outskirts.”

Their perspectives reflect a survey by Inventure across five Indonesian cities (Jabodetabek, Semarang, Surabaya, Medan, and Makassar). According to GoodStats, 34% of Gen Z rent to stay financially flexible and mobile, while 38% prefer rent-to-own schemes.

Renting as a Smarter Financial Move

Financial readiness is the biggest barrier to homeownership. Rising property prices paired with stagnant wages make mortgage commitments daunting. A Populix survey found that 66% of respondents feel financially unprepared to buy a home, making renting the more practical option.

Varrel admits, “With today’s uncertainty—layoffs, economic shifts—I’d rather save than commit to a mortgage. Renting near my office gives me comfort and flexibility. If I have to move tomorrow, I can just pack up and go.”

Jessica, who chose to rent a place so she could manage her finances according to her current personal needs, expressed a similar sentiment. The 28-year-old single woman applies the 40-30-30 rule to manage her income: 40% for daily needs (including rent), 30% for investments, and 30% for lifestyle.

“For me, buying property now would only make sense as an investment, not as a place to live. I want freedom to explore my career and life priorities.”

Coliving: Gen Z’s Second Home

For Jessica and Varrel, coliving isn’t just housing—it’s community. Jessica enjoys her Rukita unit with an en-suite bathroom, rooftop for relaxing, and 24/7 security. She also joins tenant events like badminton and poundfit classes, which help her build a support system and network.

“In my opinion, a place to live is not just for sleeping, but it can also support your lifestyle. Everything I need is here—a comfortable room with an en-suite bathroom, a rooftop on the fifth floor for relaxing, friendly staff, a flexible curfew if I come home late, and security, so I feel safe,” Jessica shared.

Varrel, who lives at Rukita Askara Tanah Abang, describes coliving as “home and family.” He bonds with fellow tenants through shared meals, weekend outings, and even comforting friends through breakups. He often invites his friends to hang out at Rukita Askara Tanah Abang, which provides a communal area and rooftop for gathering.

“My coworkers know that it’s comfortable here and the internet is fast, so they often stop by, and we can work on our laptops while chatting. On weekends, when I don’t feel like going out, I also like to invite friends here while I make them matcha or coffee. It feels like home.”

Rukita: Beyond Housing, It’s a Lifestyle

Rukita meets the demand for quality long-term rentals for Gen Z and Millennials. Over half of Rukita’s residents are under 27, with an average stay of 12 months.

Rukita’s coliving spaces and apartments come fully furnished and include laundry and room cleaning services—so you can focus on your career, studies, or passions without the hassle. With strategic locations near offices, campuses, and entertainment hubs, plus regular community events, Rukita makes it easy to balance work, life, and play.

This makes Rukita the go-to choice for students, professionals, and young couples who value flexibility, comfort, and community.

Ready to find your next home? Simply explore www.rukita.co or download the Rukita app on the App Store and Google Play. Pick your favorite unit, check the room options, and book online in just a few taps. Rukita isn’t just a place to live—it’s a community, a lifestyle, and a home that grows with you.

Published on CNN Indonesia (28 August 2025) https://www.cnnindonesia.com/gaya-hidup/20250828122728-307-1267385/alasan-75-gen-z-lebih-memilih-sewa-hunian-bukan-sekadar-tren.