Gen Z and Millennials No Longer View Houses as Investments
Jakarta (ANTARA) - Generation Z and millennials, now popularly referred to as “Zillennials” in Jakarta, are facing challenges in home ownership that go beyond mere affordability; there is also a shift in perceptions towards property as an asset.
“Buying a house is no longer considered an investment. Owning a house is also no longer seen as an indicator of success. If they want to live in Jakarta, they rent—that’s their choice now,” said Hendra Hartono, CEO of PT Leads Property Services Indonesia, at the Asia Connect: Indonesia CEO & Leaders Forum 2026 at The Westin Jakarta on Thursday.
He explained that out of around 32 million residents in Jabodetabek, about 50 percent are in the productive age group, which should be the target market for first-time home buyers. However, the Gen Z and millennial groups are now tending to delay, or even choose not to buy homes.
From a price perspective, property price increases are seen to continuously outpace income growth. This situation forces the younger generation to balance quality of life and asset ownership, especially with banking policies allowing up to 50 percent of income to be allocated to mortgage repayments.
“They have to divide priorities between quality of life and owning assets,” Hendra stated.
These units are considered to have sizes that are too small, building finishing quality below expectations, and developers’ standards for “affordable apartments” that do not align with consumers’ hopes for decent housing.
The ideal housing criteria for the younger generation include four main aspects: decent building quality, good building management, proximity to public transport, and affordable prices.
“They were born in an era where if you want to listen to music, you just use Spotify; to watch films, you just use Netflix. The habit of renting has become part of their lifestyle,” said Adhiguna.
Nevertheless, Adhiguna believes that interest among the younger generation in property still exists, provided the products offered match their needs and lifestyle. Gen Z and millennials now prioritise function over space size.
Hendra also suggested several steps for developers, including adjusting selling prices, improving building finishing quality, and reorganising stalled projects to align with market preferences.
“This is not just the wrong product, but the wrong product for the wrong generations. We can no longer build the same traditional products as before,” said Hendra.