Jakarta. A growing number of Indonesia’s Gen Z are reluctant to buy houses, citing financial unpreparedness, according to a survey by online platform Jakpat in January 2025. Out of 587 respondents, 36 percent said they preferred not to purchase property for now, underscoring the affordability gap for younger buyers.

Indonesia Property Watch (IPW) CEO Ali Tranghanda said the trend reflects frustration rather than lack of interest. “If you ask whether they want to buy a house, of course the answer is yes. But with their current purchasing power, they simply cannot afford today’s prices,” Ali said at the Golden Property Award (GPA) 2025 in Jakarta on Monday.

He said that in Jakarta, a monthly salary of Rp 7.5 million ($449) translates into mortgage installments of about Rp 2.5 million ($149) for a Rp 300 million ($18k) house, a burden many consider unattractive compared to lifestyle spending. Even subsidized houses priced at Rp 180 million ($11k) are often located far from city centers, making them less appealing to young buyers.

Ali called on the government to extend housing incentives beyond low-income segments. Current programs, such as waivers for the land and building acquisition tax (BPHTB), assistance with banking administration fees, and 5 percent mortgage rates for 20 years, mainly target the lower-income group. “The productive middle class has yet to receive adequate support, which leaves many preferring to rent rather than buy,” he said.

B-Universe Chairman and veteran property figure Enggartiasto Lukita added that developers must adapt to shifting generational trends. “This cannot be resisted. The property industry has to follow the trend, not fight it,” he said.

Enggartiasto said flexible lifestyles and the rise of work-from-anywhere (WFA) have driven demand for rentals, especially in popular destinations such as Bali. “Many young people move to Bali. They don’t buy; they rent. Developers are responding by building clusters designed for rental markets,” he explained.

While this pattern does not boost house ownership rates, Enggartiasto stressed that it sustains the property sector through a vibrant rental market.