A SIGNIFICANT change in Filipino housing preferences is emerging, with more families opting to rent rather than buy homes, particularly in Metro Manila. This trend, highlighted in the Bangko Sentral ng Pilipinas’ (BSP) 2021 Consumer Finance Survey, reflects the impact of escalating housing costs and stagnant wage growth on homeownership aspirations.
The survey revealed a notable shift towards renting, driven by economic realities that make homeownership increasingly unattainable for many Filipino families. This preference for rental properties is particularly pronounced in the densely populated urban areas of Metro Manila, where housing costs are typically highest.
While residential property prices rose by 4.9 percent in the final quarter of 2021, even amidst the pandemic, the survey data indicates a growing acceptance of renting as a more practical and affordable housing solution. This trend suggests a fundamental change in how Filipinos view homeownership, moving away from the traditional emphasis on owning a home towards a more flexible and adaptable approach to housing.
The survey also provided insights into broader Filipino household wealth, showing that non-financial assets, such as home appliances and equipment, remain the dominant component of household portfolios. Mobile phones are now more prevalent than televisions, reflecting the growing importance of technology in Filipino households. While residential properties remain the second most common non-financial asset, the shift towards renting suggests a potential long-term impact on this trend.
