In a dynamic shift within the Malaysian rental market, millennials have emerged as the predominant group of renters in 2023, representing 37.8% of all rental transactions nationwide. This trend underscores the evolving demographics of property renters and is highlighted in the 2024 Home Renters Generational Trends Report by real estate technology group Juwai IQI.
Following closely behind, Generation Z accounted for 30.7% of rental transactions, marking a significant presence in the market. This younger demographic has shown the fastest growth rate over the past five years, with their share of rental transactions in the first quarter of 2024 being 3.5 times what it was in the same period in 2019.
Despite constituting only 2.7% of the rental transactions, baby boomers have been paying the highest rent across all generations. In 2023, the average monthly rent paid by baby boomers was RM2,120, predominantly for landed properties, as opposed to apartments which are less frequently chosen by this age group. “Baby boomers tend to be at the peak of their income and savings, which is why they opt for larger homes to accommodate their families,” explained Kashif Ansari, co-founder and CEO of Juwai IQI.
Generation X, those born between 1965 and 1979, also showed notable activity in the rental market, with an average rent that is slightly less than that of baby boomers, at RM2,104 per month. The difference in rental payments between these two generations highlights the nuanced preferences and financial capabilities that distinguish each group.
Interestingly, the report indicates that every generation except Generation Z saw a decrease in their share of rental transactions between 2019 and 2024. This shift could be attributed to various economic and social factors, including the impact of the Covid-19 pandemic which had temporarily depressed rental rates.
This comprehensive study by Juwai IQI, which analyzed over 67,000 rental transactions, not only sheds light on the generational shifts within the rental market but also offers valuable insights for investors and property managers aiming to cater to these diverse age groups.
The continued preference for more spacious and privately-owned homes among the older generations, contrasted with the increasing participation of younger renters, paints a picture of a rental market that is as diverse as it is dynamic. As the landscape evolves, understanding these trends will be crucial for anyone involved in Malaysia’s bustling real estate sector.
