Nearly Half of Young People Find Buying a Home Harder? They Don't Fear High Prices, Only Poor Value

Is Homeownership Getting Harder for Youths? Nearly Half of Gen Z Say Property Investment Is Increasingly Difficult, Yet Confidence Remains

 "Buying a home is simply too tough." This sentiment has become a common refrain among many young Singaporeans today.

According to a recent survey, nearly half of Gen Z and Millennial respondents feel that investing in property is more challenging than ever, citing one primary factor: affordability.

Survey Highlights:

45% of young respondents cite lack of affordability as the primary reason homeownership has become harder;

37% stated they currently cannot afford to purchase a home;

Yet nearly six in ten (around 60%) still plan to buy a property within the next three years;

87% continue to believe that real estate remains a "reliable path to long-term wealth building".

Gen Z vs Millennials: Two Distinct Homeownership Realities

The survey took a closer look at two distinct age groups: Gen Z (aged 21–27), where only 17% currently own a home, and Millennials (aged 28–35), where the homeownership rate reaches 44%.

While there is a clear homeownership gap between the two cohorts, trends show that younger Singaporeans still view buying a home as an essential milestone for stability and personal growth.

Interestingly, 29% of youth do not expect to purchase a property until at least five years later, reflecting a cautious, wait-and-see approach as they bide their time for opportune entry points.

Top Housing Choices: HDB Remains Mainstream, Private Homes Stand as the "Aspirational Goal"

Among youths planning to buy within the next three years, over half chose an HDB flat, while 27% plan to purchase non-landed private residential property (such as condominiums).

In other words, the majority lean towards a "stepping-stone" strategy—entering the market first and upgrading later—with budgets primarily focused on sub-$1 million HDB flats or compact resale condos.

Top Three Priorities for an Ideal Home

The survey also revealed the top three considerations young buyers weigh when selecting a home:

Proximity to amenities, family, and workplaces; price affordability; and unit size and living comfort.

These three factors mirror a broader shift in homebuying attitudes across the market.

Compared to last year, "locational convenience" has unseated "property price" as the single most important factor.

The data reveals:

57% of respondents consider proximity to work or school to be the most vital;

The proportion prioritising price fell to 48%, while unit size stood at 31%;

Buyers are no longer solely chasing larger floorplates, pivoting instead towards everyday convenience and quality of life.

Perceptions of Affordability: HDB Seen as Achievable, Private Property Remains a High Hurdle

51% of respondents view Build-To-Order (BTO) flats as affordable, and 28% find HDB resale flats reasonably within reach. However, only 13% and 16% feel they can afford new launch or resale private homes, respectively.

Although few can immediately afford private properties, interest is undeniably growing—an increasing number of respondents noted they would gladly consider investing in private property if price points are right.

The Homeownership Mindset: More Than Just Shelter, a "Symbol of Independence"

The survey also found that youths view buying a home as more than just putting a roof over their heads—it serves as a powerful marker of identity and self-reliance.

75% prefer owning over renting, believing that having a home of their own represents stability and self-actualisation, whereas more mature buyers are driven predominantly by societal norms and family planning needs.

Policies and Pressures: Practical Realities Behind the Buying Ambition

Despite strong enthusiasm for real estate, young buyers face substantial headwinds: climbing property prices alongside cooling measures and financing curbs such as ABSD (Additional Buyer's Stamp Duty), TDSR (Total Debt Servicing Ratio), and MSR (Mortgage Servicing Ratio), which cap borrowing leverage. Furthermore, upgraders looking to make the leap often have to sell their existing property before committing to a purchase to avoid hefty upfront stamp duties—forcing many to rent during the transition and adding financial strain.

Young Singaporeans still firmly believe in the value of property; they are simply approaching it with greater prudence. Far from giving up on homeownership, the younger generation is navigating the market with a more pragmatic, strategic mindset.