(Yicai) Feb. 11 -- An increasing number of families with middle-aged parents are entering the rental market, which now provides them with a long-term and stable lifestyle.

The proportion of renters aged 36 and above in Hangzhou exceeded 31 percent last year, compared with about 24 percent the previous year, according to data released by the local branch of the Beike Research Institute on Feb. 6. Moreover, the proportion of renters over 45 has climbed to 10 percent from 8 percent.

People’s idea of housing is transforming. Renting is no longer just a transitional solution for young people with limited finances but a long-term living option with high cost-performance. The Chinese middle-aged population is now more prone to rent not only to avoid risks from changing economic cycles but also to adapt to the transformation of the real estate market.

The average age of renters in 40 key Chinese cities rose to 34.1 in 2024 from 32.7 in 2021, according to a report released last year by the Research Center for Real Estate and Fintech, PBC School of Finance, Tsinghua University. The proportion of renters over 35 reached 37.2 percent in 2024, while that of renters aged 36 to 45 was 24.6%, surpassing that of the 26-30 age group for the first time.

In addition, the ratio of small apartments of one or two bedrooms to the total rents in the 40 key Chinese cities has gradually decreased in the period, while that of larger apartments with three, four, or more bedrooms has increased, indicating a rise in rentals by families, the report also showed.

A mother of two born after 1985 living in a first-tier city told Yicai that her family of seven chose to rent a three-bedroom apartment for CNY10,000 (USD1,450) a month instead of buying a house and taking on a mortgage to live a more relaxed life.

“We don’t need to come up with millions of Chinese yuan -- equal to hundreds of thousands of US dollars -- for a downpayment on a house,” she said. “I can buy myself jewelry or bags on a whim and take the children for trips abroad every year, and if we lose our jobs, we don’t have to worry about a huge mortgage.”

The rental market has become increasingly mature and stable in recent years, she explained. “In the past, rents would rise every year, and some landlords would breach contracts and evict tenants if they were in a hurry to sell,” she noted. “In the last two or three years, landlords not only cherish stable, long-term tenants but also actively reduce rents.”

Editor: Futura Costaglione