More Filipinos renting amid rising home costs, BSP survey shows

A growing number of Filipino families are opting to rent rather than buy homes, a trend most pronounced in Metro Manila, where high property prices and sluggish wage growth make homeownership increasingly out of reach.

According to the Bangko Sentral ng Pilipinas (BSP) Consumer Finance Survey, 11.3 percent of households nationwide were renting in 2021, up from 10.2 percent in 2018. This shift was particularly evident in the National Capital Region (NCR), where 34.9 percent of respondents rented their homes. In contrast, homeownership remained high in other parts of the country, with 73.9 percent of families outside Metro Manila owning or co-owning their residences.

Despite this trend, seven in every 10 families in the Philippines still own their homes, with ownership more prevalent in Visayas and Mindanao. However, in Metro Manila, where real estate prices have surged and wages have struggled to keep pace, homeownership was significantly lower at just 43.9 percent. Even during the pandemic, BSP data revealed that residential property prices grew by 4.9 percent in the last quarter of 2021.

Other Filipino assets

The BSP survey also provided insights into Filipino household wealth. Nonfinancial assets remain the cornerstone of Filipino families’ financial portfolios, with 96.6 percent of households owning home appliances and equipment. Mobile phones (92.8 percent) have surpassed televisions (81.1 percent) as the most common household item. Residential properties (69.9 percent) ranked as the second most common nonfinancial asset, followed by vehicles (35.3 percent), with motorcycles (61.7 percent) being the most popular type.

In terms of financial assets, deposit accounts remained the most widely held at 35.3 percent, followed by cash savings kept at home (28.7 percent) and e-money accounts (24.3 percent), reflecting a shift toward digital financial transactions.

As homeownership trends evolve, affordability remains a major concern, particularly in urban centers. While cash purchases dominate in provincial areas, Metro Manila’s high costs continue to push more families toward renting, underscoring the growing challenge of housing accessibility in the country.