Facing the prospect of long term renting in a tough property market, a growing number of tenants are laying out money from their own pockets to upgrade apartments to their individual tastes, experts said.

Wu Tong, an associate professor at East China Normal University's School of Social Development, said the trend signals a deep generational shift.

"Compared with their parents' generation, who often spent decades saving to purchase a home as a symbol of stability and achievement, today's young people place greater emphasis on their immediate sense of well-being," said Wu.

"They care about whether they feel comfortable and happy now, rather than postponing satisfaction entirely to the future."

China's rental housing market is underpinned by 260 million renters, according to the 2024–25 Housing Rental Industry Development Report released by the PBC School of Finance at Tsinghua University in August. In 2024, the total number of rental housing units nationwide reached 91 million, with nearly 90 percent of listings coming from individual landlords.

Rising demand for higher-quality rental housing leaves more than 60 million existing units with potential for being upgraded and renovated, according to the 2025 China Urban Long-Term Rental Market Development Blue Book released in April.

Transforming existing stock into "better homes" has become central to optimizing rental supply, it said. Over 40 percent of renters are willing to increase their budget for higher-quality renovations.

New tenant Xiao Cai, 30, decided that renting would not prevent her from improving her space.

After five years of moving between small shared flats in Zhangzhou, Fujian province, Xiao, who works in the education industry, rented a 60-square-meter one-bedroom apartment for 1,000 yuan ($146.30) a month in 2025.

The budget-friendly unit came with plain white walls and shiny floor tiles, but it had good lighting and a functional layout. By signing a three-year lease, she secured a price well below the local market average.

Six months after moving in, water leakage caused sections of the walls to peel, so she decided to undertake a proper renovation. Her initial budget was 3,000 yuan, but the final cost exceeded 9,000 yuan, equivalent to her monthly salary.

Although she had planned to paint the walls and install stone plastic composite flooring herself, a lack of skills and time led her to hire professionals. To control costs, she purchased most large furniture items secondhand, significantly reducing expenses while maintaining quality.

"The most worthwhile investment was upgrading the walls and floors, because they directly determine the overall quality and comfort of the space. The biggest savings came from buying secondhand furniture and making some items myself," said Xiao.

The renovation made the apartment feel like it belonged to her, she said. "Now I genuinely look forward to returning. The house is rented, but the life inside it is mine. Renovating it wasn't about ownership, it was about creating a place where I can feel stable and at ease," said Xiao.