Realtors association seeks homebuying incentives for people with 2 kids

Rising property prices have caused many young Vietnamese to embrace the “double income, no kids” lifestyle, it said in a note.

Pham Mien, its deputy head of research and market evaluation, said most policies that encourage people to get married before 30 are “generic and unlikely to produce the expected results.”

A similar proposal was made by the HCMC’s Department Health in August last year. It contended that such a policy would give couples the confidence to have and raise children.

Vietnam’s declining birth rates and aging population have been a matter of concern in recent years.

It fertility rate in 2023 was 1.96 children per woman, a drop from the previous year’s 2.01 and the replacement ratio of 2.1. It had been 3.6 children just 35 years ago. The average marriage age in HCMC has risen to 30.4.

The impacts of an aging population are a shortage of young human resources, shrinking workforce and productivity and increased burden on social welfare.

VARS said the main reason for the declining birth rate is financial concern. “Fears about making ends meet are heavily influenced by housing prices,” Mien said, pointing out that this is the reason why couples delay having children and choose to have only one.

She said rising housing prices and rents have increased the cost of living, with accommodation consuming the majority of people’s incomes.

In HCMC, housing prices repeatedly surged to new highs in 2016-18, and the same happened in Hanoi in 2019-23, she added.

VARS also urged the government to encourage affordable commercial housing amid a glut of luxury properties.