In a major first-tier city, Zhang Nan, a mother of two children born after 1985, lives with her seven-member family in a rented three-bedroom apartment. Despite both she and her husband earning high annual salaries and owning a small school-district apartment, Zhang has rejected the traditional path of taking on a mortgage to upgrade to a larger home. Instead, she chooses to pay nearly 10,000 yuan per month in rent to maintain a more relaxed lifestyle. Research data indicates that China has approximately 260 million people living in rental housing, and within this vast market, a significant shift in attitudes toward housing and asset allocation is quietly taking place. Today, an increasing number of middle-aged families with dependents are entering the rental market, viewing renting as a long-term and stable lifestyle choice.

According to the latest data from Hangzhou Shell Research Institute, the proportion of tenants aged 36 and above in Hangzhou reached 31.4% in 2025, an increase of nearly 7 percentage points year-on-year. A research report released by the Real Estate and Fintech Research Center at Tsinghua University's PBC School of Finance further reveals that tenants aged 35 and above account for nearly 40% of the rental population across 40 major cities in China.

Zhang Nan, who gave birth to her second child in 2024, remains firm in her decision to rent and continues to feel satisfied with her choice. Both Zhang and her husband work for foreign companies and are high earners. Since welcoming their second child two years ago, their household has grown to include seven long-term residents: the couple, their two children, a nanny, and Zhang’s parents. "At the time, my parents urged us to buy a bigger home, but I didn’t even go house-hunting. I simply upgraded from a two-bedroom to a three-bedroom rental," Zhang explained.

Zhang’s reluctance to purchase a larger property stems from her desire to avoid mortgage debt and not be tied down by homeownership. "I actually own a small, old school-district apartment of less than 30 square meters, which I use for my child’s school enrollment, but I’ve never lived there. That apartment was bought right after I got married, and the mortgage has already been paid off. I may continue renting indefinitely," she shared. Currently, Zhang’s family spends close to 10,000 yuan per month on rent, with an additional 10,000 yuan going toward the nanny’s salary. Despite these significant fixed expenses, she feels that renting has made her life considerably easier. "We don’t need to come up with a down payment of several million yuan all at once. I can buy jewelry or bags whenever I want, and we take our children on an overseas trip every year. If one of us loses our job, we won’t have to worry about a massive mortgage," Zhang noted.

Over the past two to three years, Zhang has observed the rental market becoming more mature and stable. "Rent used to increase every year, and some landlords would break contracts or evict tenants if they were eager to sell. But in recent years, landlords have come to value stable, long-term tenants like me and have even proactively reduced my rent. Most landlords now realize that the cost of leaving a property vacant after losing a suitable tenant is quite high," she said.

Xiang Ting, who works for a state-owned real estate development company, sold her only property in 2024 and has been renting ever since. Her household also includes several members: the couple, their son, and the grandparents who moved from their hometown to help care for the child. "Making this decision required courage, but it also aligns with broader trends," Xiang remarked. She explained that, in the past, working in real estate made homeownership seem essential, with some colleagues even purchasing multiple properties. However, after her husband lost his job in 2022 and her own employment became unstable, the family decided to sell their home. This move not only eased their mortgage burden but also allowed for greater flexibility in career choices. "When looking for a new job, I no longer have to factor in commute times. We can simply move closer to wherever I find work," Xiang added.

In reality, middle-aged tenants like Zhang Nan and Xiang Ting, who rent with their families, are becoming increasingly common. In August 2025, the Real Estate and Fintech Research Center at Tsinghua University's PBC School of Finance released a report titled "2024-2025 Housing Rental Industry Development Report." The report highlights that China’s rental market serves a base of 260 million people, with 91 million rental housing units available in 2024, nearly 90% of which are privately owned. Interestingly, the data shows a steady annual increase in the proportion of "older tenants" in their middle years. Specifically, across 40 key cities, the average age of tenants rose from 32.7 years in 2021 to 34.1 years in 2024. From 2021 to 2024, the share of tenants under 35 decreased across all age groups, while the proportion of those aged 35 and above continued to grow, reaching 37.2% in 2024. Tenants aged 36 to 45 accounted for 24.6%, surpassing the share of those aged 26 to 30 for the first time.

Additionally, a notable trend has emerged: smaller units are declining in popularity, while larger units are on the rise. Between 2021 and 2024, the proportion of rental transactions involving one- and two-bedroom units gradually decreased, while the share of three-bedroom, four-bedroom, and larger units increased, indicating a growing number of family-oriented tenants.

A recent report from Hangzhou Shell Research Institute, which analyzed rental customer data on its platform over the past year, also shows a significant increase in the proportion of older tenants and family-oriented rentals in Hangzhou. In 2025, tenants aged 36 and above accounted for 31.4% of the market, up 6.8 percentage points year-on-year. Those aged 36 to 44 made up 21%, an increase of 4.8 percentage points, surpassing the 19.1% share of tenants under 25. Meanwhile, the proportion of tenants aged 45 and above exceeded 10%, rising by 2 percentage points. The share of four-bedroom rental transactions also increased by 0.9 percentage points.

Behind these figures lies a shift in housing attitudes: renting is no longer just a temporary solution for young people with limited financial means but has become a cost-effective long-term housing strategy for many. According to real estate research firm CRIC, trends such as delayed marriage and childbirth, or choosing not to have children, have led to a postponement in the age of first-time homebuying, extending the rental demand cycle. As a result, the tenant demographic has diversified beyond young people, with a noticeable trend toward small-family rentals. The proportion of units larger than 50 square meters has increased, and tenants have begun to value quality apartments, paying attention to layout design, interior finishes, shared amenities, and community services.

The transformation of the rental market toward stability and standardization reflects not only individual rational risk aversion amid economic cycles but also a broader shift in China’s real estate development model. The country has undergone the largest and fastest urbanization process in world history, with massive rural-to-urban migration creating a vast floating population. At one point, insufficient supply of both commercial and public rental housing led to poor rental experiences, including misleading property listings, arbitrary rent hikes, fraud, and frequent disputes over security deposits.

This situation saw a fundamental turnaround during the 14th Five-Year Plan period. According to data released by the Ministry of Housing and Urban-Rural Development in October 2025, over 11 million units of various types of public rental housing and resettlement housing were built or renovated during this period, benefiting more than 30 million people. The impact has been particularly significant in major cities with tight housing resources. For example, a recent report from the China Index Academy shows that since the introduction of national public rental housing policies in 2021, Shanghai has established a multi-level rental supply system offering "a bed, a room, or an apartment." By the end of the 14th Five-Year Plan period, Shanghai had accumulated over 600,000 public rental housing units, with around 400,000 units already supplied.

The large-scale entry of public rental housing into the market has had a "catfish effect." CRIC statistics indicate that in 2025, the overall occupancy rate of centralized long-term rental apartments in first-tier cities exceeded 85%, with some cities reaching over 96%. This reflects strong demand and high absorption capacity in the long-term rental market. However, rents have continued to decline, indicating that the substantial supply of public rental housing, coupled with relaxed eligibility criteria, has significantly impacted the overall rental pricing system.

CRIC suggests that the coexistence of high occupancy rates and low rents signifies the maturation of the long-term rental apartment market. Under these conditions, tenants are willing to commit to longer rental periods, creating stable market demand. Meanwhile, long-term rental operators have maintained high occupancy rates through product upgrades and improved services, optimizing asset turnover efficiency.

The introduction of rental housing regulations has further strengthened tenants’ confidence. In September of last year, China’s first administrative regulation in the housing rental sector, the "Housing Rental Ordinance," came into effect. Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, believes that this ordinance fills a gap in national-level regulations, setting clear boundaries for market participants and providing enforcement guidelines for regulators. It is expected to drive the industry’s transition from "extensive growth" to "standardized operation."

For middle-aged families like Zhang Nan and Xiang Ting, the binding nature of homeownership is diminishing, while the focus on livability is reemerging. When renting can offer a sense of security and certainty comparable to owning a home, the future real estate market may no longer judge success by "property ownership" but by "quality of life."