The Rental Revolution: How Millennials and Gen Z Are Redefining Urban Living in India

For generations, owning a home was considered the ultimate life goal in India. It followed a predictable family roadmap: get a job, buy a house, settle down. This legacy of stability through ownership was rarely questioned. But now, younger Indians are rewriting that script.

Millennials and Gen Z — particularly those between 23 and 35 — are changing what it means to live, work, and belong in Indian cities. For them, the idea of owning a home is no longer a milestone, but one of many options — and increasingly, not the most desirable one.

Renting as a Lifestyle, Not a Limitation

It’s tempting to assume young Indians rent simply because they can’t afford to buy. With real estate prices in Mumbai, Delhi NCR, and Bengaluru rising by 8–10% annually, and down payments often crossing ₹15–20 lakh, affordability is certainly a challenge. But the decision to rent is also a reflection of a deeper value shift.

Today’s young adults prioritise flexibility, mobility, and experiences over permanence. Renting aligns with their desire for freedom and adaptability. As per Anarock's 2023 Urban Mobility Report, nearly 70% of young migrants to Tier 1 cities now choose to rent long-term — not out of compulsion, but by choice.

The Demand for Digital-First Living

Millennials and Gen Z have grown up booking cabs, groceries, and movie tickets through apps. It’s only natural that they expect their rental experience to be equally digital and hassle-free. This has given rise to proptech platforms offering smart rental solutions — from digital lease agreements and cloud-based rent tracking to automated maintenance support.

A 2023 McKinsey Global Report notes that 80% of Gen Z consumers have mobile-first expectations. What was once seen as a luxury has now become the standard. Landlords and brokers who fail to keep up with these expectations risk being left behind.

Co-Living: A Growing Preference

For Gen Z, “home” is more than just a roof over their heads. It’s also a space to connect, collaborate, and thrive socially. Mental well-being, shared experiences, and accessible amenities are becoming essential features in housing choices. This has fuelled the rise of co-living spaces in major metros, offering common areas like lounges, gyms, gaming rooms, and curated networking events.

According to JLL India, the co-living market is growing at a CAGR of 10–15%, especially among students and mobile professionals in IT and other sectors.

Author Note: Mr. Manoj Srivastava, MD, Rentilium

As the Managing Director of Rentilium, Mr. Manoj Srivastava has closely observed this shift. He believes the move towards rentals is not a short-term reaction, but a long-term cultural change. The growing popularity of digital platforms, flexible leases, and co-living reflects a fundamental rethinking of housing needs and aspirations.

Work Culture Is Driving Geographic Flexibility

The pandemic permanently changed how people work. Remote and hybrid work models are now normal, and with that has come a new openness to geographic movement. According to CBRE India’s 2023 Workforce Mobility Survey, over 40% of professionals under 35 are willing to move cities every two years.

This kind of mobility is tough to sustain under a traditional homeownership model. A 20-year EMI can feel like a restriction in a world where career and life goals are increasingly dynamic.

A Cultural Shift, Not a Market Phase

What we are witnessing isn’t just a housing trend; it’s a broader cultural movement. Renting is no longer seen as a stepping stone to homeownership. It’s a full-fledged lifestyle — modern, digital, and mobile.

To keep pace with this change, builders, tech companies, and policymakers must innovate rental ecosystems that cater to the values of this new generation. The future of Indian housing is not merely in creating more homes, but in designing smarter, more responsive rental systems that are accessible, safe, and flexible.