Homeownership, while still an aspiration for many, is not always the most practical choice—especially in today’s real estate climate. The Philippine property sector has long been a pillar of economic growth, but trends are shifting toward condo rental. With a surplus of unsold properties and developers struggling to move inventory, the market is showing signs of being in a hyper-supply phase. This means that property values are likely to stagnate or even decline, making real estate investments riskier and less rewarding in the short term.
For the average consumer, this raises an important question: Is it really worth locking yourself into a mortgage for years when the market is struggling to keep up? Instead of dealing with the burden of property depreciation, hefty down payments, and long-term financial commitments, many are now seeing the benefits of renting a condo instead.
Condo rentals let you live near business districts and lifestyle hubs all while avoiding the headache of property maintenance—especially in the National Capital Region, where renters make up 32.6% of households. You’re not tied down to a single location, which is ideal for those who prioritize career mobility or travel. Moreover, with many developers eager to fill vacancies, rental prices can become more competitive, giving renters access to prime locations at reasonable rates.
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For those exploring their options, DMCI Homes is a reliable choice with a wide range of properties available for sale, for rent with preselling, and through condo unit rent-to-own programs in prime locations across the country. The properties are designed for comfort, accessibility, and long-term value. Their communities are strategically located near key business districts, major roads, and lifestyle hubs—ensuring that future renters and buyers can enjoy both urban convenience and a well-planned living environment. Moreover, DMCI Homes’ signature resort-inspired amenities provide a relaxing escape from city life, making condo living not just a necessity but an experience worth investing in.
The changing landscape of homeownership
The idea of homeownership has long been seen as a major life milestone. However, in today’s market, more and more people are stepping back and reconsidering if it’s really a good decision. With shifting financial priorities, and a real estate market that isn’t as fast-moving as before, committing to buying a home isn’t as appealing as it once was. But what’s really driving this shift? Here are just some explanations as to why homeownership is no longer the default choice for many:
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Economic uncertainty
Over the past few years, the cost of necessities—food, utilities, transportation—has steadily risen due to inflation. This means people aren’t just budgeting for a home, they’re juggling higher expenses in nearly every aspect of daily life. The financial cushion that used to make homeownership manageable is getting thinner, and for many, the idea of committing to a decades-long mortgage feels riskier than ever.
One of the biggest barriers to buying a home right now is the rising interest rates. When interest rates are low, home loans are more affordable because you pay less in interest over time. But as rates are going up in the Philippines, monthly mortgage payments are becoming significantly higher, making it harder for people to afford home loans in the first place.
To put it simply:
- A higher interest rate means a bigger loan repayment each month.
- Banks and lenders also become stricter about who qualifies, requiring higher down payments and stronger financial credentials.
- Buyers with unstable or fluctuating incomes (freelancers, small business owners, or young professionals still growing their careers) struggle to secure loans compared to those with stable, high-paying jobs.
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Because of this, many potential homeowners—especially Gen Z—are postponing the idea of buying property. Instead of tying themselves to a mortgage that could strain their finances, they’re prioritizing financial flexibility by opting to rent a condo.
With homeownership becoming less accessible, the current real estate market is shifting its focus to renters and rent-to-own buyers—people who may not have the upfront funds for a full home purchase but still want to live in well-located, high-quality residences.
Shifting priorities among buyers
The modern workforce increasingly values flexibility, both in work and living situations. The rise of remote work has empowered individuals to choose residences that align with their desired lifestyles rather than being tethered to a specific location due to job requirements.
These are often:
- Young professionals—millennials and Gen Z—who make up 47% of the workforce and who want to stay close to work and lifestyle hubs but aren’t ready for a mortgage.
- Growing families who prefer flexible housing options before settling into a permanent home.
- Expats or remote workers who want a home in the city without long-term financial commitments.
- Investors are probably looking for rental properties rather than buying for personal use.
With these factors in play, it’s easy to see why homeownership isn’t as straightforward as it used to be.
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Factors driving the shift to condo rentals
Instead of being tied down by a mortgage, people now want the freedom to move when opportunities arise, whether for work, travel, or lifestyle changes. Without the need to stay close to office hubs, renters are exploring locations that offer better convenience and overall quality of life. Here are just some of them:
1. Affordability
Buying a condo may seem like a great long-term investment, but when you break down the numbers, renting is often the more feasible option—especially for younger professionals or those who prioritize financial flexibility.
For example, consider a condo unit in the Philippines priced at ₱6 million in Makati or Bonifacio Global City (BGC). The upfront costs for purchasing such a property typically include:
- Down payment (20%) – ₱1.2 million
- Closing fees & taxes – ₱300,000 or more
- Monthly mortgage (20-year loan at 7% interest) – Approximately ₱46,500 per month
By comparison, a similar rental unit in Makati or BGC may cost between ₱30,000 and ₱40,000 per month, with only a two-month deposit and one-month advance required upon move-in (approximately ₱90,000 to ₱120,000 upfront).
This represents a significant financial difference—over ₱1 million in upfront costs alone—making renting the more accessible and cost-effective option. Furthermore, homeowners bear additional expenses such as association dues, property taxes, and maintenance costs, which renters can avoid.
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2. Flexibility and mobility
One of the biggest perks of a condo for rent? You’re not tied down to one place. Imagine you commit to buying a condo, but a year later, your company relocates, or you decide to move abroad. Selling a property isn’t easy—it can take months or even years to find a buyer, and you might sell at a loss if the market isn’t in your favor.
Renting gives you the freedom to relocate whenever life changes. Short-term leases (6-12 months) allow renters to move based on career opportunities, lifestyle shifts, or financial situations. If a job opportunity arises, renters can pack up and go without the hassle of selling property or waiting for a buyer.
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3. The rise of hybrid work and remote opportunities
After the pandemic, more people realized they don’t need to be in an office every day—leading to a major shift in lifestyle and housing preferences. Hybrid and remote work means less need to live near office hubs. Instead of committing to one expensive location, professionals now have the option to explore different cities without sacrificing career growth.
Urban rental hotspots are also booming. While some remote workers choose to move to more affordable locations, many still prefer renting in Metro Manila’s business districts for easy access to co-working spaces, networking opportunities, and entertainment.
These financial and lifestyle shifts explain why renting a condominium is now the more practical and flexible choice for many individuals.
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Benefits of renting condos in 2025
Beyond affordability and accessibility, condominiums are no longer just about convenience—they offer a smarter, more flexible, and financially viable way to live, especially in urban centers. Here are some key benefits of a condo rental:
1. Lower financial risk
Owning a home comes with major financial commitments, starting with a hefty down payment, followed by years of mortgage payments, property taxes, and maintenance costs. Renting, on the other hand, allows people to live in premium locations without the stress of long-term debt or fluctuating property values. Moreover, renters don’t have to worry about surprise maintenance expenses—home repairs and upkeep are typically handled by the property management, meaning no unexpected costs for fixing a leaky roof or replacing appliances.
2. Access to premium amenities
Unlike traditional houses, many condos like DMCI Homes properties, offer high-end amenities that would otherwise be costly to maintain in a privately owned home. Imagine having access to a swimming pool, gym, co-working spaces, and sky lounges—all included in your rent. Instead of investing in expensive gym memberships or setting up a home office, renters can enjoy these built-in luxuries without a long-term financial commitment.
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Furthermore, many modern condos are designed with shared spaces that encourage community engagement, such as coworking areas, lounges, game rooms, and event spaces. This is especially beneficial for remote workers and young professionals who want a balance of privacy and social interaction.
3. Freedom to explore different locations
Where you choose to live often depends on what stage of life you’re in. When you’re young, the excitement of city living—being close to business districts, nightlife, and social hubs—feels ideal. You want to be in the heart of the action, with everything from trendy cafés to co-working spaces just a few steps away.
But as life progresses, your priorities shift. You might reach a point where you want a quieter, more spacious environment—maybe closer to nature or in a family-friendly suburban area. Renting a condo gives you the flexibility to transition between these phases effortlessly.
Challenges of condo rentals
Renting a condo has a lot of advantages but not without its challenges. As with any living arrangement, there are factors that renters need to weigh before making a decision. What exactly are these challenges, and how can they be managed? Take a closer look.
1. Rising rental prices
In recent years, the demand for rental properties in urban centers has led to increased rental rates. For instance, in Manila, the median rent price for condos is approximately ₱26,927 per month. Renting can be more affordable than homeownership, but these rising costs can still pose a financial strain, especially for younger individuals or those with limited income growth. Renters must budget carefully and consider potential rent increases when planning their finances.
If rising rental costs are a concern, choosing a unit in an emerging location rather than a prime central district can help balance affordability with convenience. Many developments offer competitive rates outside major business hubs while still providing easy access to work and lifestyle spots. Long-term renters can also negotiate lease terms with landlords to secure fixed rental rates for extended periods.
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2. Limited control over property
Renting a condo often comes with restrictions on customization and modifications. Landlords or property management companies typically have policies that limit alterations to the unit's structure or aesthetics. This means renters may not be able to paint walls, install fixtures, or make other changes that personalize the space to their tastes. Such limitations can affect the sense of "home" and may not cater to those who prefer a personalized living environment.
For those who value personalization in the living space, there are creative ways to make a rental feel like home without making permanent modifications. Using removable wallpaper, stylish furniture, or modular storage solutions can help personalize a space while staying within rental guidelines.
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3. Potential for lack of stability
Rent increases can occur upon renewal, depending on market conditions and lease terms. The Rent Control Act of 2009 mandates that landlords provide tenants with at least three months' advance notice before terminating a lease. However, this notice period may not provide sufficient time for renters to secure alternative housing which can lead to potential disruptions.
Weighing your priorities and planning can make condo rental a much more practical and flexible option compared to homeownership. These challenges and uncertainties are all valid concerns, but they still don’t necessarily outweigh the financial freedom and lifestyle benefits that renting provides.
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The role of developers in shaping the rental market
In 2025, developers are no longer just focused on selling units—they’re actively adapting their strategies to meet the increasing preference for rentals and rent-to-own options. People want a home that fits their lifestyle. Developers are responding by enhancing shared spaces and prioritizing amenities that make rental living feel more like a premium experience. Here are some key points to talk about:
1. Designing rental-friendly condos
Developers today understand that renters have different priorities than buyers. Many are creating units with flexible layouts that can adapt to various lifestyles—whether it’s an open-concept space for young professionals, studio units designed for co-living, or fully furnished options for those who want a hassle-free move-in experience.
They’re also incorporating smart technology like keyless entry, app-based concierge services, and energy-efficient appliances, making condo living even more convenient. These thoughtful additions make it easier for renters to settle in without having to invest in major renovations or customizations.
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2. Emphasizing community and amenities
Gyms, swimming pools, and wellness areas are becoming standard, eliminating the need for renters to pay for separate memberships or travel for workouts. Moreover, coworking spaces and business lounges are now major selling points, catering to remote workers who want a productive space without leaving home.
Retail areas and convenience stores are also within condo developments reducing the need for renters to commute for daily necessities. This shift means that modern condo developments are fully integrated communities designed to provide everything residents need within arm’s reach.
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3. Catering to Millennial and Gen Z renters
Unlike previous generations, millennials and Gen Z tend to prioritize experiences over possessions. Many prefer to rent because it allows them to remain financially flexible, travel more, and adapt to career opportunities. Developers recognize this trend and are adjusting their marketing strategies accordingly:
- Offering shorter lease terms to attract renters who prefer flexibility.
- Providing furnished units so younger renters can move in without worrying about furniture costs.
- Emphasizing lifestyle perks—proximity to entertainment hubs, social events, and networking opportunities—rather than just square footage.
With these shifts, developers are making condo rentals more appealing than ever, creating spaces that match the evolving needs of modern renters
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Essential tips for condo renters in 2025
It’s still important to approach the process with careful planning. Understanding the key factors that influence your rental experience can help you make the best decision. So what exactly should renters keep in mind when searching for a condo? Here are some essential tips:
1. Choose a condo according to your lifestyle and needs
Finding the right location and amenities can make or break your rental experience. Before signing a lease, consider how close the condo is to your daily destinations. If you work in BGC, choosing a unit nearby can help you avoid long commutes, while a place in Quezon City or Alabang may offer a more relaxed atmosphere. Accessibility is also key—ensure that essential spots like grocery stores, public transport, and healthcare facilities are within reach.
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If you work remotely, a coworking space or lounge can be a major advantage. Fitness enthusiasts may prioritize buildings with a gym, pool, or jogging path, while those who frequently order deliveries or dine out should check if the area has great restaurants or an in-house convenience store. Furthermore, if your job situation is uncertain, look for short-term rental options. Be mindful of any strict rules on visitors, pets, or renovations that could impact your stay.
2. Negotiate favorable rental terms and secure a desirable unit
Once you’ve found a condo you like, don’t be afraid to negotiate your lease terms and condo rental contract—especially if you’re planning to stay long-term. Many landlords are willing to adjust pricing or offer better conditions if you know how to approach it. Try negotiating lower rent for a longer lease.
For example, if the landlord is asking for ₱35,000/month for a one-year lease, ask if they’d accept ₱33,000/month if you sign for two years. This works because landlords prefer stable tenants over short-term renters who leave unexpectedly.
Furthermore, ask if utilities or association dues can be included. Some landlords bundle water, Wi-Fi, or dues into the rental fee, which can help you avoid unexpected costs.
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3. Understand your rights and responsibilities as a renter
One of the most common mistakes renters make is signing a lease agreement without fully understanding their rights and obligations. This can lead to disputes over security deposits, rent increases, or sudden lease terminations. So carefully read your lease agreement before signing. Ask these questions:
- Are there hidden fees beyond the rent?
- What are the penalties for breaking the lease early?
- What are the rules for renewals and potential rent increases?
- Know your rights regarding eviction and rent hikes.
Under the Philippine Rent Control Act, landlords cannot raise rent by more than 7% annually for units under ₱10,000 in Metro Manila and ₱5,000 outside Metro Manila—unless you agree to it.
Landlords must give at least three months’ notice before terminating a lease without cause.
Lastly, verbal agreements mean nothing in disputes. Always ask for written confirmation of any agreements, from rent reductions to repair responsibilities. Knowing your rights and responsibilities will help you avoid being caught in a rental trap and ensure that both you and your landlord hold up your ends of the lease.
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A new era: The future of condo rentals
Times have changed, and so have people’s priorities. Owning property was seen as the ultimate sign of stability, a goal everyone was expected to work toward. But today, that mindset is shifting.
With the rising cost of living, economic uncertainties, and the changing nature of work, many people are rethinking what "home" really means. Instead of locking themselves into a 30-year mortgage, they are prioritizing financial flexibility, mobility, and lifestyle choices that better align with their goals. The dream is no longer just about owning a house—it’s about having the freedom to live where you want, when you want, without being tied down by long-term financial obligations.
Looking ahead, the preference for condo rentals is expected to remain strong. Developers are responding to this demand by designing rental-friendly units with flexible layouts and a focus on community-centric amenities.
Condo rentals aren’t just a fallback option anymore—they’re becoming the new normal for a generation that values freedom, experiences, and adaptability.
If you have any thoughts, questions, or tips of your own, we’d love to hear from you! Feel free to engage with us on our social media pages like Facebook.
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