Economic Implications of Gen Z's Shift Away From Homeownership

A growing trend shows Gen Z increasingly prioritizing renting in urban centers over suburban homeownership, a shift that could fundamentally alter India's real estate market dynamics.

While 34% of Gen Z globally express a desire to buy homes this year, many are deterred by high costs, leading to a preference for mobility and flexible living arrangements.

Economists warn that a sustained decline in first-time home buying could impact long-term capital formation and the growth of the housing finance sector in India.