DATA: RENTERS’ WEALTH GAP REACHED RM5,000 LAST YEAR; JOHOR GETS BIGGEST GAINS

DATA: RENTERS’ WEALTH GAP REACHED RM5,000 LAST YEAR; JOHOR GETS BIGGEST GAINS

• Penang homeowners finished the year about RM6,000 ahead of renters
• Perak homeowners were nearly RM8,000 ahead
• National price growth of just 0.7% was still enough to give homeowners a clear financial edge over renters
• The data also outlines when renting continues to make sense, particularly for mobility and affordability reasons

Kuala Lumpur, 27 January 2026 — There’s a wealth gap in the property market between renters and homeowners that added up to RM5,000 over the past 12 months, according to data released today by Juwai IQI. Juwai IQI Co-Founder and Group CEO Kashif Ansari explained the results.

“The Malaysia-wide renter’s wealth gap was RM 5,000 in the past year. In Johor, the average owner is nearly RM28,000 ahead of renters. In Penang, they are almost RM6,000 ahead, and in Perak, they are nearly RM8,000 ahead.

“The wealth gap really becomes significant over time. While it might be RM5,000 over one year, after a decade it would add up to RM50,000,” Mr Ansari said. “Year after year, owners climb up the wealth ladder, expanding the wealth gap more and more.”

Where Owners Made the Most

Mr Ansari said, “Johor homeowners added more to their net worth than residents of any other state, a total of more than RM26,000 in a single year for the average homeowner. Coincidentally, that is more than the RM​​22,294 they paid into their mortgage during the same 12 months.

“The outcome in Johor shows that property price growth is more important than all the other numbers,” said Mr Ansari. “Where house prices went up, so did owners’ net worths, even though they can’t cash in the gains until they sell their homes.

“Across Malaysia, house prices are up by 0.7% or just over RM3,400, according to NAPIC’s House Price Index. That increase is part of the RM5,000 advantage owners gained over renters in the past year.

“Because prices go up faster in some states than in others, homeowners in different parts of Malaysia had different results.

“Here’s an example. I know a family that happened to sell their home in Perak and move to Johor. Last year, the value of their new home shot up by more than three times what their old neighbours back in Perak made.

“The second factor that pushed homeowners’ balance sheets higher than renters’ last year is low-interest rates. With interest rates lower than rental yields, the implication is that a typical home will cost more to rent than to finance with a mortgage. That gives owners a clear financial advantage.”

When Renting Still Makes Sense

Mr Ansari said, “Even though homeowners may end up financially ahead, there are still times when renting is the right choice.

“One is when you’re uncertain about staying in one location for at least several years. For example, you might want to relocate for work or aren’t sure where you want to settle.

“Another situation when renting makes sense is when you are still saving to buy a home. It’s always better not to overextend your finances, which means not buying or renting a property you can’t afford.

“Property ownership is a route to financial security, but it’s not right for everyone at
every stage of their lives.

“I want to clarify a few things. We’ve left out expenses like utilities, maintenance, and condo fees, which are variously the responsibility of renters or owners. Instead, our analysis focuses just on the financial costs and returns of owning and renting.

“Also, while this data is correct, every individual property is distinct. Before you buy or rent, do an analysis of the specific homes you’re considering. Do your research and work with a good agent so you can make the wisest choice.”

— end of media release —

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