Buying a home, which for decades was a symbol of stability, social mobility and family achievement, is no longer the dominant dream in both Latin America and the United States. In its place, renting is rapidly gaining ground. The reasons vary, but the result is the same: more people are renting, whether by choice, necessity or simple inability to afford a mortgage.

In Latin America, Colombia has become the country with the highest proportion of households renting, according to the most recent BBVA Research report. Today, 7.3 million Colombian households live in rented housing, compared to 7.1 million that live in property. In other words, renting is no longer a temporary step: it is the dominant way of life in the country's cities.

This makes Colombia the regional leader, ahead of countries such as the Dominican Republic and Ecuador, and marks a turning point: 40% of Colombian households live in rented housing. Added to this is another revealing fact: in the last 25 years, more households were formed than formal housing, leaving one out of every three new households without access to legal housing. Many ended up renting, in informal construction or in precarious situations.

Homeownership recedes

The causes of this change are multiple. On the one hand, mortgage credit costs have skyrocketed in recent years. On the other hand, subsidies for the purchase of housing have been reduced. And in parallel, the price of new homes continues to rise, especially in cities such as Medellin, which recorded the highest nominal increase (6.1%), according to BBVA.

This combination has slowed home buying. The figures show it clearly: in Colombia, from 13.7 new homes sold per 1,000 households in 2022, to only 8.5 in 2024. In the most vulnerable households, the drop is even sharper: from 33 to 18 VIS (social interest housing units) per 1,000 poor households.

The economic side of the boom

While new housing faces barriers, leasing is showing dynamism. Partly because prices have risen above inflation, which makes it a profitable option for investors. But also because leasing times are shortening, there is more demand in strategic areas and, according to platforms such as Aptuno and Fincaraíz, interest in tourist housing and Airbnb-type leases has grown.

The living model has also changed. Millennials see renting as a life option, not as a stage.

What about the U.S.?

This transformation is not exclusive to Latin America. In the United States, the trend is also clear: today it takes an additional $50,000 a year to buy a house than to rent an apartment, according to a recent report by the real estate platform Redfin, quoted by Axios.

To buy a median-priced home, a person must have an annual income of at least $116,600, while $64,200 is enough to rent. The gap, which has widened in recent years, responds to a "triple threat": high prices, high mortgage rates and a shortage of homes for sale.

The average price of a house reached US$423,900, while the average monthly rent remains at US$1,600. In addition, according to Bankrate, in the 50 largest cities in the country it is cheaper to rent than to buy. The phenomenon is most pronounced on the West Coast, but extends to almost the entire country.

What Colombia and the United States show is that the traditional model of life - work, buy a house and build equity - is changing radically. New generations face a reality where access to property is increasingly difficult, subsidies are insufficient, and inflationary pressures are hitting the pockets of renters and buyers alike.

In Latin America, the scarcity of formal housing, labor informality and the high cost of credit make access to home ownership even more difficult. In the United States, the Trump effect and new tariffs on construction materials -such as steel and iron- threaten to make housing projects even more expensive.

The truth is that, whether in Bogota or Los Angeles, Medellin or Miami, the dilemma is the same: buying has become a luxury, and renting has become a necessity or the least expensive decision.