Introduction

Although the size of the earth doesn't change, have you noticed that our world is becoming smaller and smaller? It all comes down to how our lifestyles have evolved over the past 50 years.

In today’s lifestyle we seek convenience, accessibility and enablement that encourages us as individuals to want to explore the world, build friendships that span the globe, be part of more communities, experience new cultures all while progressing in our careers. Although this seems like it has happened overnight, it has taken decades of technological advancement for a digital and physical infrastructure to be developed that serves as the foundation in our lifestyle today.

Amongst all of us today is the need to be borderless where we unlock our full potential across aspects of our life that once seemed almost impossible. In recent years, a noticeable shift has emerged in the lifestyle choices of young adults. Traditional notions of settling down with a mortgage and roots in one place have given way to a more adventurous and flexible lifestyle. This growing trend among young adults involves embracing a nomadic way of living and opting for rental accommodations rather than committing to a long-term mortgage.

Changing Priorities: The priorities of young adults have evolved over the years. Many prioritise experiences over possessions and seek a life enriched by diverse experiences and adventures. This includes the digital nomads that travel to different places while working from home embracing the ‘pleasure while working’ concept. Renting enables them to relocate easily and seize new opportunities in different cities or even countries. The American Community Survey revealed that in 2021, 45% of renters aged 18 to 34 moved to a different city or state, whereas only 24% of homeowners in the same age group made a similar move.

High Property Prices and Student Loan Debt: The soaring property prices in many urban centres globally have become a significant deterrent to homeownership for young adults. Coupled with rising inflation costs and the burden of student loan debt, saving for a down payment becomes a daunting task. The Federal Reserve reports that in 2023, 37% of young adults cited high property prices and student loan debt as their primary barriers to homeownership.

Avoiding Long-Term Commitment: Buying a house represents a significant long-term commitment, which might not resonate with young adults who value flexibility and independence. Renting offers them the freedom to switch homes or cities as their career and personal goals evolve. According to a 2023 study by Pew Research Center, 52% of young adults prefer renting because they don't want to be tied down to a specific location.

Financial Flexibility: One of the primary reasons young adults are leaning towards renting is the financial flexibility it offers. Renting allows them to allocate funds to experiences, travel, education, and investments, rather than tying up their capital in a mortgage down payment and property maintenance costs. According to a survey conducted by the National Association of Realtors in 2022, 64% of renters aged 25 to 34 cited financial flexibility as their main reason for not pursuing homeownership.