Housing prices are increasingly out of reach for many people, while demand for rental housing in major cities continues to rise. The average apartment price-to-income ratio for an urban civil servant household has exceeded 32, highlighting the significant gap between housing prices and household income. Against this backdrop, developing rental housing alongside for-sale commercial housing is emerging as a potential approach to balancing investment resources, generating cash flow and retaining income-producing assets for long-term operation. This is also one of the key issues attracting attention as the real estate market enters a period of restructuring.
1. The Growing Gap Between Housing Prices and Income
The real estate market is facing a structural challenge: housing demand remains high, but homeownership is becoming increasingly unaffordable for middle-income groups.
According to Dr. Can Van Luc at the 2026 Real Estate Forum, the ratio of average apartment prices to the annual average income of an urban civil servant household has exceeded 32. This indicator compares apartment prices with household income; it does not mean that a family could necessarily afford a home by saving all its income for just over 32 years.
At the same forum, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), discussed single individuals earning more than VND 26 million per month. This group may exceed the income threshold for eligibility to purchase social housing while still struggling to afford commercial housing at current market prices.
This reality highlights the need to expand housing options beyond homeownership, particularly stable, long-term rental accommodation at affordable rates. Rental housing is therefore not only a solution to residential needs but also a potential long-term business segment for real estate developers.
2. Key Market Figures
Data on housing demand and development targets indicate that rental housing is receiving increasing attention from both the market and policymakers:
More than 32 times: The ratio of average apartment prices to the annual average income of an urban civil servant household.
217,430 units: Estimated rental housing demand across localities by 2030, according to Report No. 356/BC-BXD, as cited by media outlets.
191,023 units: The rental housing development target for the 2026–2030 period under Resolution No. 303/NQ-CP.
708,834 units: The target for social housing for sale and lease-purchase over the same period.
899,857 units: The combined target for the two housing categories above.
Under Resolution No. 303/NQ-CP, Ho Chi Minh City has been assigned a target of 52,000 rental housing units, Hanoi 10,240 units, Hai Phong 15,000 units, and Bac Ninh and Thai Nguyen 10,000 units each for the 2026–2030 period. These are planned targets, not figures representing units already completed or put into operation.
In Hanoi, three rental housing projects included in the city's development pipeline for 2026–2030 have a combined scale of nearly 4,400 units, with total investment exceeding VND 34 trillion and a combined land area of more than 40 hectares. Among them, the Long Bien project is expected to comprise approximately 2,025 units, with total investment of more than VND 29 trillion. These projects are subject to projected implementation schedules and should not be interpreted as completed housing supply.
These figures indicate that rental housing is increasingly being recognized as a distinct component of housing development plans, rather than merely an ancillary activity within the real estate market.
Dr. Nguyen Van Dinh shares his insights on the restructuring phase and emerging growth drivers of the real estate market.
3. The Model of Using Commercial Housing Sales to Support Rental Housing: Balancing Cash Flow
One approach discussed at the 2026 Real Estate Forum involves combining for-sale commercial housing with rental housing within the same development. Real estate lawyer Pham Thanh Tuan described this approach as “using commercial housing sales to support rental housing.” Under this model, developers can combine project development and sales activities with the long-term operation of income-generating assets.
Instead of developing all apartments for sale, a developer may sell a portion of the commercial units to generate revenue and support project implementation, while retaining another portion for rental operations.
The model has two main value components:
Commercial housing: Generates revenue from sales, supports capital recovery and helps meet the project's financial obligations.
Rental housing: Allows the developer to retain ownership and operating rights, generate recurring revenue and build a portfolio of long-term income-producing real estate assets.
In essence, this approach combines property development and sales with long-term asset operation. Rather than relying solely on profits from unit sales, developers may also establish a recurring income stream through rental operations.
However, this model does not automatically guarantee financial viability. Its effectiveness depends on sales progress, construction costs, financing costs, the proportion of units retained for rent and occupancy rates. Revenue from apartment sales is not necessarily sufficient to finance the entire rental component. Developers therefore need to prepare separate cash flow projections for each component.
4. Policy Framework and Development Opportunities
An important policy framework is Hanoi People's Council Resolution No. 72/2026/NQ-HDND, which took effect on July 1, 2026, establishing mechanisms for housing investment, development and support within the city.
Under this resolution, rental housing projects must meet several notable requirements:
At least 50% of the total housing units in a project must be allocated for rental purposes.
At least 70% of the rental units in the project must be reserved for eligible policy beneficiaries.
Up to 50% of the total apartment units may be developed as commercial housing for sale, provided that they do not exceed 60% of the project's total residential floor area.
Exemptions from land-use fees and land rent may apply to the land area used for rental housing and technical infrastructure within the project, in accordance with applicable regulations.
Developers must use a portion of the profits from commercial housing sales to reduce rental prices in line with the city's policy.
This mechanism is significant in encouraging projects that combine commercial housing and rental housing. However, it is important to emphasize that the policy applies within Hanoi and does not establish mandatory ratios for projects nationwide.
At the national level, Resolution No. 303/NQ-CP assigns rental housing development targets for the 2026–2030 period and sets out development priorities in major urban areas, industrial parks, economic zones and areas developed under the Transit-Oriented Development (TOD) model.
This direction underscores the importance of selecting project locations based on actual rental demand, transport connectivity and proximity to employment centers, rather than relying solely on land prices or expectations of real estate appreciation.
5. The Developer's Perspective: Balancing Opportunities and Investment Challenges
For real estate developers, combining commercial housing and rental housing can diversify revenue streams, but it also requires a shift in investment strategy.
First, market positioning and product development.
Developers need to clearly identify their target tenant groups, such as industrial park workers, office employees, professionals, young people entering the workforce and households that cannot yet afford to buy homes. Rental rates, apartment sizes and amenities should be tailored to the needs and affordability of each group.
Second, planning and location.
Projects should be situated near employment centers, public transport, schools, healthcare facilities and essential services. Accessibility to workplaces is a key factor influencing rental demand and occupancy rates.
Third, financial planning.
Developers need to assess total investment costs, land costs, construction expenses, borrowing costs, sales collection schedules and the capital required to sustain rental operations. Units retained for rental purposes typically have a longer capital recovery period, requiring funding that matches the investment and operating horizon.
Fourth, operations and management.
The business of rental housing does not end when construction is completed and the property is handed over. Developers need to maintain systems for tenant management, rent collection, maintenance, cost control and service quality. Key performance indicators include occupancy rates, rental revenue, net operating income (NOI), operating expenses and payback periods.
This is where the capabilities of a property developer differ from those of a business equipped to own, manage and operate income-producing assets over the long term.
6. A Long-Term Perspective on Rental Housing Development
Market data, housing development targets and policy mechanisms point to three key considerations for businesses.
First, rental housing is increasingly being incorporated into development plans with specific targets. The target of 191,023 rental housing units for the 2026–2030 period provides a basis for developers to consider this segment as part of their long-term investment strategies, rather than focusing exclusively on property sales.
Second, project performance depends on actual operating results. Even a large-scale project may fail to achieve financial viability if its location is unsuitable, rental rates exceed tenants' affordability or operating costs are too high. Therefore, rental demand research should be conducted from the planning and design stages.
Third, asset management capabilities can become a competitive advantage. Developers need to prepare operational systems, secure long-term funding and establish asset maintenance plans. Partnering with professional property management companies or long-term investment institutions is another option worth exploring.
Over the long term, combining commercial housing and rental housing could contribute to a broader real estate business model, shifting from project development and sales alone towards an integrated approach that encompasses development, ownership and asset operation.
Conclusion
Developing rental housing alongside commercial housing for sale is an approach worth considering in response to the widening gap between housing prices and household income. For real estate developers, this model can diversify revenue streams and build a portfolio of assets that generate long-term income. However, its effectiveness depends on capital allocation, location selection, rental affordability, actual market demand and operational capabilities. In the coming years, businesses that can integrate project development with professional asset management and operation may find additional opportunities as Vietnam's real estate market undergoes restructuring.
