
I read through all 160 pages of the Household Expenditure Survey 2023 so you don’t have to, and here are my thoughts on why home ownership has dipped in Singapore. While the decline from 89.1% in 2017/18 to 87.9% in 2023 may seem minor, it reflects deeper economic and social changes. To understand this shift, let's explore the macro and micro factors affecting home ownership rates.

Macro Factors: Broad Economic and Policy Changes
Rising Property Prices and Inflation
One of the biggest barriers to home ownership is the rising cost of real estate. Over the years, property prices have surged due to high demand, land scarcity, and inflationary pressures. While wages have grown, they have not always kept pace with property appreciation, making it harder for first-time buyers to enter the market.
Higher Interest Rates and Mortgage Costs
The global shift toward tighter monetary policies has led to increased mortgage rates, making home loans more expensive. With higher borrowing costs, many potential homeowners are opting to delay their purchases or continue renting.
Government Cooling Measures
To curb excessive property speculation, the Singapore government has introduced several cooling measures, such as higher Additional Buyer’s Stamp Duty (ABSD), stricter loan-to-value (LTV) limits, and tightening of Total Debt Servicing Ratio (TDSR). These policies have made it more challenging for individuals to afford homes, particularly for those looking to upgrade or invest in multiple properties.
Shifting Demographics and Aging Population
As Singapore's population ages, an increasing number of households comprise solely non-employed persons aged 65 and above, rising from 6.2% in 2017/18 to 9.3% in 2023. Many in this group may downsize, sell their properties, or shift to rental housing, affecting overall ownership rates.
Growth in Rental Market and Flexible Living Preferences
The younger generation prioritizes flexibility in housing, often preferring renting over buying to maintain mobility for career opportunities. The rise of digital nomadism and expatriate work culture also contributes to a higher demand for rental options, reducing ownership rates.
Micro Factors: Individual and Household-Level Influences
Affordability Challenges for Young Homebuyers
Despite government grants and subsidies, young professionals face difficulty in accumulating the necessary down payment, especially as wages may not rise proportionately with living costs. The delayed milestones of marriage and family formation further contribute to lower home ownership.
Financial Priorities and Debt Burden
Rising student loan debts, lifestyle expenses, and increased discretionary spending have shifted financial priorities. Many individuals prefer to invest in experiences, education, and travel over committing to home ownership early in life.
Increase in Alternative Housing Choices
With co-living spaces, serviced apartments, and Build-To-Rent (BTR) schemes gaining popularity, traditional home ownership is no longer the only viable option. Many prefer short-term, flexible housing solutions over long-term financial commitments.
Increase in HDB Resale Prices
The surge in HDB resale flat prices has priced out some buyers from the market, particularly those in lower-income brackets. With HDB 4-room flats experiencing the fastest price increase (3.8% per annum), affordability remains a concern.
Housing Supply Constraints and Delays
Construction delays due to the COVID-19 pandemic have affected the supply of new Build-To-Order (BTO) flats, leading to longer waiting times. This delay has pushed some prospective buyers toward the rental market, at least temporarily.
Conclusion: A Shift in Housing Mindsets and Policies Needed
The decline in home ownership reflects a combination of economic constraints, policy shifts, and evolving lifestyle preferences. While Singapore still enjoys a high home ownership rate compared to global standards, these trends suggest that housing policies and financial planning strategies must adapt to changing realities.
To address this dip, policies could focus on affordable housing schemes, better financial literacy programs, and incentives for first-time buyers. Additionally, innovative housing models such as rent-to-own schemes or subsidies for young families could help bridge the gap between aspiration and affordability.
As housing trends continue to evolve, staying informed about market movements and available housing options will be key for individuals looking to secure their homeownership dreams in Singapore's ever-changing landscape.
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