SHAH ALAM, Apr 20 — Young people are increasingly inclined to rent rather than buy homes due to financial burdens, high property prices and lifestyle priorities, according to a town planning and community development expert.
Lecturer at the Faculty of Human Ecology, Universiti Putra Malaysia (UPM), Mohammad Mujaheed Hassan, said his 2023 study found that today’s younger generation carries significant financial commitments.
“Of the 2,523 respondents aged between 25 and 45 in the Klang Valley, 67.3 per cent had vehicle loan commitments ranging between RM800 and RM1,200 per month.
“This means they are willing to spend on expensive cars or foreign car brands, and also view cars as a measure of life achievement,” he told Media Selangor.
In addition, Mohammad Mujaheed said 72.7 per cent of youth have credit card commitments from at least two banks, while 73.9 per cent of respondents reported having no surplus income for savings.
He said the figures show that young people tend to prioritise lifestyle spending over home ownership, making them more vulnerable to financial difficulties.
“This situation is quite serious as it contributes to financial problems such as high debt burdens, which could lead to even greater issues, including bankruptcy,” he said.
He added that the government should introduce financial management education or campaigns as early as school level to improve financial literacy among the public.
He also said young people should take advantage of various affordable housing schemes and facilities provided by the government and state administrations.
“We now have various affordable housing schemes, and even assistance to provide home deposits. So I think there is no reason for them not to buy a house,” he said.
In 2024, Bank Negara Malaysia said home ownership among young people aged between 25 and 34 remains low at an estimated 35 per cent.
Under Budget 2026, the government has allocated RM6.09 billion to the Ministry of Housing and Local Government to implement housing initiatives for all groups in society.
