Why More Filipinos Are Choosing to Rent Instead of Buy Homes

More Filipino Families Choosing to Rent Over Homeownership Amid Rising Costs

An increasing number of Filipino families are opting to rent rather than own homes, particularly in Metro Manila, as high housing costs and slow wage growth make homeownership less attainable.

According to the 2021 Consumer Finance Survey conducted by the Bangko Sentral ng Pilipinas (BSP), this trend reflects a “notable shift” in housing preferences, especially in urban areas. The triennial survey, which assessed 16,212 households between March and December 2022, found that 11.3% of respondents were renting in 2021—up from 10.2% in 2018.

Metro Manila Leads in Renting Trends

The preference for renting was significantly higher in the National Capital Region (NCR), where 34.9% of families leased accommodations, compared to 10.6% in Balance Luzon. In contrast, homeownership remained dominant in Visayas and Mindanao, where a larger share of families own their homes.

Despite the shift toward renting, seven in every ten Filipino families still owned or co-owned a house, with homeownership outside Metro Manila reaching 73.9%. However, in NCR, homeownership stood at just 43.9%, reflecting the challenges of rising property prices and stagnant wages.

Even during the pandemic, BSP data showed that residential property prices increased by 4.9% in the last quarter of 2021, further limiting affordability for many families.

Household Wealth and Financial Trends

Beyond housing trends, the BSP survey also provided insights into the financial standing of Filipino families:

• Nonfinancial assets remain the foundation of household wealth, with home appliances and equipment being the most commonly owned assets (96.6% of households).
• Mobile phones (92.8%) have overtaken televisions (81.1%) as the most popular household item.
• Residential properties (69.9%) ranked as the second most commonly owned nonfinancial asset, followed by vehicles (35.3%), with motorcycles (61.7%) being the most preferred mode of transport.
• Among financial assets, bank deposit accounts (35.3%) were the most commonly held, followed by cash savings at home (28.7%) and the rising popularity of e-money accounts (24.3%).

The findings underscore the evolving financial behaviors of Filipino households, with technology and economic pressures influencing their housing and financial decisions.