Nowadays, owning a house still feels like a distant dream for most Gen Z. Amidst the intense discussion about financial freedom and investment tips on social media, the reality on the ground shows the opposite: rising property prices, stagnant salaries, and high living costs.
Many studies reveal that Gen Z cannot afford a house. Is it actually an inability or an unwillingness? Various factors influence the issue of home ownership, ranging from lifestyle shifts to Gen Z's views on property values.
The Trend of Rising House Prices
Actually, is the problem of house ownership for Gen Z triggered by unwillingness or inability? The current reality is that the increase in house prices is not proportional to or faster than office income.
So, it could be argued that the difficulty of buying a house for Gen Z is greater than for the boomer generation.
On the other hand, if we look deeper through Gen Z's perspective, who have a more dynamic understanding of the realities of everyday life, the proportion of those who are “unwilling” to buy a house is greater than those who are “unable” to do so.
Why is this happening? First, the trend in house prices in Indonesia remains moderately rising. In fact, house prices are predicted to skyrocket. According to Bank Indonesia data, the Residential Property Price Index (IHPR) was recorded at 110.13 in the second quarter of 2025, an increase of around 0.9% compared to the previous year.
Due to rising prices and relatively limited or stagnant incomes, many Gen Z is choosing alternative options, such as rentals or rent-to-own, rather than buying a house outright.
Lifestyle Shifts and Their Effect on House Ownership Among Gen Z
Gen Z grew up in a digital, fast-paced era full of freedom of choice. From the way they work and shop to how they define “home,” everything shows a major shift from previous generations.
While owning a house used to be considered a symbol of stability and success, for most Gen Z, it is no longer a top priority. Why?
For Gen Z, a house is not the only form of “stability.” They tend to measure success by financial freedom and life experiences, such as traveling, dining, education, or building a business.
Many of Gen Z prefer flexibility over long-term commitments such as 20-year mortgages. For some people, experiences like traveling or building a business feel more valuable than tying themselves to a permanent home.
Another challenge comes from the financial system. The mortgage process is often seen as complicated and time-consuming, while low or undeveloped credit scores mean that many members of Gen Z struggle to get loan approval.
Aside from the lifestyle shifts, the emergence of remote working and digital nomad trends is also a factor. Many of them can work from anywhere, without being tied to an office in a big city. Therefore, they prefer to rent apartments, co-living spaces, or even move from city to city depending on their work needs.
Is Owning a House Still Relevant for Gen Z?
Apart from economic and lifestyle factors, Indonesian culture also plays a big role in influencing Gen Z's ability to buy a house. One example is the sandwich generation phenomenon, which is when someone has to support the financial needs of two generations at once, their parents and children, or even their younger siblings.
Many of Gen Z are currently in this position. Instead of saving for a down payment on a house, part of their income is allocated for family expenses, such as siblings' education costs, parents' household needs, or joint installments.
Although many are not yet able to buy a house conventionally, this does not mean that Gen Z has lost interest completely. They are just looking for other ways.
For some of Gen Z, owning a house remains a long-term dream. This is not for the sake of prestige but rather the desire to have a safe and stable space in the future. However, for others, a house is not a top priority.
Considering the factors above, the issue of home ownership for Generation Z cannot be reduced to affordability. There have been changes in values, lifestyles, and financial strategies that have influenced their perspective on the meaning of owning a house.
However, amid these dynamics, it is essential for the younger generation to continuously understand trends and opportunities in the property world so that they can adjust their steps to the existing conditions.
For a more in-depth discussion on this issue, ranging from house price trends and changes in young consumer behavior to the construction industry's perspective, you can listen to the Ruang Ratih podcast by Semen Merah Putih.
Through conversations with experts and practitioners, this podcast presents new insights into the world of residential properties and development, and how the current generation shapes the meaning of “home” relevant to their era.
In this podcast, Ratih serves as the Nona Rumah, guiding engaging discussions with trusted guests from various fields.
Be sure to subscribe to the Semen Merah Putih YouTube channel and turn on its notifications to receive updates on the latest episodes.
Subscribe, like, and share your thoughts in the comments section for a chance to win an e-wallet worth IDR 1 million. Are you #TimBeliRumah or #TimNgekosAja?
