Why Indian Youths Prefer Rented Accommodation Than Becoming A Homeowner?

Modern Indian youths do not carry the same stereotypes and stigmas that the previous generations were bound by. Traditional yardsticks of success like marriage and kids at a certain age, buying a house, and world-tour after retirement do not apply to this group. It is more focused on making an identity in this competitive world than owning properties. Moreover, rather than preferring a government service, youngsters are opting for a career that holds their passion. And, to achieve a more fulfilling job, they are ready to move anywhere in the world. Thus, instead of buying a house and living in the same city for years, they prefer living in rented accommodation. Here are a few reasons for the same:

1) Flexibility To Switch Accommodation As Per Evolving Needs

Whether it’s a bachelor, newly married couple, or new parents, renting is great for everyone. The best thing is that it offers flexibility to change accommodation as per the newly evolved needs. Moreover, by renting, one can stay near the office location, which will reduce the time taken on commuting. Alternatively, buying a house in the central business district is a costly affair. 

2) The EMI-To-Rent Ratio

One of the prime reasons that millennials are choosing renting over buying a house is because of the huge gap between an EMI and rent. While in some cities this gap might be negligible due to low property costs, in big cities, the EMI-to-rental ratio is very high. For example, if you buy a flat in Jagatpura, its average cost will be ₹30 Lakhs. Now deducting the 20% down payment, the total loan amount will be ₹24 Lakhs. Now, the monthly home loan EMI on this amount will be ₹24000, which is much higher than the average rent of a similar flat which is ₹12000 per month. You can also find many low budget flat on rent in Jagatpura, Jaipur.

Conclusion- With property prices rising steadily, rented accommodation is increasingly becoming popular among youths. It allows them to switch cities for better career prospects. And, the money that they will save on paying EMIs can be used in achieving many other milestones in life.
Location: Jaipur, Rajasthan, India

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