BTN Says Housing Demand Remains High Amid Economic Pressures

Demand for housing is assessed to remain strong even as the economy faces pressures. Bank Tabungan Negara (BTN) states that homes are a basic necessity, making their demand relatively stable. BTN’s President Director Nixon LP Napitupulu said that home ownership is directly linked to family needs, so people continue to strive to buy homes. “Homes are a basic necessity. People will still try to have a home, no matter the conditions,” Nixon stated during a media briefing in Bandung, West Java, on Thursday (9/4/2026). According to Nixon, this situation makes demand for Home Ownership Credit (KPR), especially for subsidised homes and first homes, more stable compared to other sectors. Economic pressures are deemed to have a greater impact on purchases of homes for investment or second homes. “If it’s for investment or a second home, it might be affected. But for a first home, people will definitely find a way to have one,” Nixon said. He added that home purchase financing often involves family support, particularly for the down payment. “In Indonesia, it’s common for families to pool resources for the down payment, helping each other to own a home,” he remarked. BTN records that the majority of KPR debtors come from low-income communities, with an average monthly income of around Rp4.9 million. The debtors’ work backgrounds are also diverse, ranging from informal workers to employees. On the other hand, the realisation of KPR disbursements is influenced by seasonal factors, such as the rainy season and the Ramadan and Eid al-Fitr periods, which can slow down house construction completion. “During the rainy season or Eid, the physical completion of houses usually slows down. That’s what makes disbursements appear to drop, not because demand has disappeared,” Nixon explained. Given these conditions, BTN assesses that the housing sector, particularly first homes, has resilience against economic pressures. “This is a basic need, like food and clothing. People will still strive to fulfil it,” Nixon stated. BTN projects that KPR demand will remain steady in line with the growth in the number of new families and the continuously increasing need for housing.