According to the Vietnam Real Estate Market Research and Evaluation Institute (VARS IRE), even workers in top-earning sectors like banking are falling behind the rapid surge in housing prices.

VARS IRE states that a two-income banking household could afford an apartment in about 3.5 years if they devoted their entire income to the purchase. However, following the principle that housing costs should not exceed one-third of total income, the savings period stretches to 10 years or more. In reality, this period is even longer, as housing prices continue to rise faster than wages.

It is evident that already-high property prices are steadily climbing, while income growth fails to keep up. This widening gap makes homeownership increasingly difficult, even for high-income groups.

Interestingly, since 2019, there has been a noticeable rise in young people's participation in the housing market, particularly in the apartment segment, despite soaring property values.

Data from real estate exchanges affiliated with VARS shows that buyers aged 25 to 35 are making up a growing share of transactions, now accounting for over 40% of all sales. In some projects, this demographic represents as much as 70%.

A recent survey by a consulting firm highlights a clear trend toward younger buyers entering the market. The primary clientele for apartment units is still those aged 35-44, but younger generations aged 18-34 are increasingly significant, now making up over 27% of transactions.

VARS IRE attributes this trend to Vietnam’s current demographic dividend, with more than half of the labor force under 35. Demand for housing and real estate investment is substantial among this group.

Moreover, many young people are financially independent earlier by leveraging opportunities in technology, e-commerce, digital content creation, and digital asset investments. In many cases, family support helps cover part or most of the apartment cost, significantly shortening the savings timeline.

Credit policies and developer sales strategies are also more flexible than in the past. Banks now offer favorable loan packages for young buyers, and developers break down payment schedules and introduce preferential lending options, making it easier for this demographic to access the housing market.

The homeownership dream drifts further away

Despite these favorable factors, VARS IRE emphasizes that the proportion of young people who can afford to buy homes remains small compared to total demand. Most still face slow income growth, high loan burdens, and rising living costs.

In recent years, housing prices in major cities like Hanoi, Ho Chi Minh City (HCMC), and Da Nang have continuously increased, establishing a new pricing baseline.

According to VARS IRE data, as of Q2 2025, the average apartment price in Hanoi rose by nearly 88% compared to 2019, reaching about $3,075 per square meter. In Da Nang, prices rose by almost 70% to $2,705 per square meter, while in HCMC, the increase exceeded 48%, hitting around $3,157 per square meter.

Under stable price and income assumptions, calculations based on 2014 levels show that a family with an average income, using all their earnings to save, could afford a 2-bedroom apartment (70 m², valued at around $69,000) in roughly 18 years.

However, applying the rule that housing expenses should not exceed one-third of income, the saving period would triple.

By mid-2025, with the current per capita income, purchasing a 2-bedroom, 70 m² apartment (priced at around $209,000) would require nearly 27 years of saving all income, or up to 80 years under the one-third rule.

"If comprehensive policy solutions are not implemented - such as developing affordable and social housing and strictly controlling prices to prevent unreasonable increases beyond real income levels - the dream of homeownership will remain out of reach for most young people," VARS IRE concluded.

Hong Khanh