Young Vietnamese flock back to empty nest as housing becomes unaffordable

In June last year Hai, 27, his wife, and their two-year-old daughter left his parents' home in Thanh Xuan District, Hanoi, seeking independence and more space. Life among three generations—seven adults and two children—had become stifling.

His parents urged them to stay and save money, but he believed their combined monthly income of VND20 million (US$783) was enough to cover the VND8 million rent and other expenses, including childcare.

"Life felt like a dream," he says, enjoying the freedom of setting his own schedule and raising his child without interference.

However, the independence was short-lived. Suddenly one day their landlord raised the rent by VND3 million, citing market trends. Within two months of moving out he had to borrow money from his parents. By the fourth month the financial strain had become too much, and they moved back.

"At this rate, I might never afford my own place," he says wistfully.

The soaring cost of apartments in Hanoi has made it unaffordable for many people to buy or rent. Photo by VnExpress/Quynh Nguyen

Skyrocketing property prices have left many young people unable to rent or buy homes. Thanh Nha, 28, of Hoang Mai District had to abandon her dream of owning a home. Despite saving up VND300 million and getting VND800 million from her parents, she could not afford any kind of apartment. She explored properties on the city’s outskirts and older apartments in central districts, but everywhere prices exceeded VND3 billion. Houses larger than 30 square meters cost at least VND5 billion.

She considered a bank loan, but with her irregular income and fluctuating interest rates, she feared she might default on repayment. Hai and Nha’s struggles reflect a growing trend: young Vietnamese returning to live with their parents due to unaffordable housing, mirroring trends in the U.K., U.S., Australia, South Korea, and China.

According to property analyst Le Quoc Kien, young people whose parents own homes in Hanoi and HCMC often have no choice but to stay with their families to save money. With salaries averaging VND10-15 million, home ownership has become a distant dream. A recent report by real estate research firm Global Property Guide ranked Hanoi as the 11th most expensive city in Asia for renting. The average rent for a two-bedroom unit has reached US$715, surpassing Kuala Lumpur, Jakarta and Mumbai.

A Vietnam Association of Realtors (VARS) bulletin noted that with prices outpacing income growth, house ownership is becoming increasingly unaffordable for many. VARS estimates that to buy an averagely priced apartment in Hanoi, a household needs to earn VND45-210 million a month or 2.3 to 10 times most people’s actual incomes. Nguyen Van Dinh, chairman of VARS, attributes the soaring prices to a supply shortage caused by developers catering mainly to high-income buyers and speculators. The lack of affordable options leaves people with low and medium incomes with few choices.

HCMC faces a similar crisis, with even lifelong residents with steady incomes struggling to buy homes. Quang Thong, 30, a marketing employee, has repeatedly tried to move out of his parents' home in District 8 but cannot afford it. He earns VND15 million a month and does not pay rent or food expenses. After contributing VND2 million to his parents and paying for his transport and entertainment, he saves nearly half of his salary. "People assume being a local makes it easier to buy a home, but that’s not true for me," he says. At the end of 2023, his sister’s family moved in, making their home even more crowded. He briefly considered renting but gave up after researching prices.

A report by the Ministry of Construction said apartment prices in HCMC rose by 20-30% in 2024. Affordable housing, once priced at under VND30 million per square meter, now starts at VND45 million. A small apartment in Thu Duc City now costs nearly VND2.5 billion—far beyond his reach, as his savings barely exceed VND100 million. "I would need to earn at least VND50 million a month to even consider buying," he says. "Even if I worked extra, I’d only make VND20 million, which would drain my health and leave no time for myself."

But real estate expert Kien advises young people not to wait until they can buy a home outright as prices rise faster than salaries. He suggests saving at least 30% of the cost of a house within the first 10 years of working and financing the rest through long-term bank loans but ensuring that monthly mortgage payments do not exceed 40% of income. One option is buying a property on the outskirts and renting it out while leasing a more convenient place closer to work, he says. Renters should spend no more than 20% of their income on housing, he advises.

"Choosing a cheaper home outside the city might save money but would increase commuting costs and time.

"People should estimate total costs and time before making a decision."