Millennials and Gen Z Drive Demand for Subsidised Housing, Says BP Tapera

The growth of young families is the main driver of demand for subsidised housing, with millennials and Gen Z forming the majority, according to the Public Housing Savings Management Agency (BP Tapera). This trend is further supported by developers and the government increasingly focusing on regional connectivity, road access, clean water networks, transport, education, healthcare, and commercial facilities as part of subsidised housing development. “From a demographic perspective, the growth of young families, urbanisation, and the increasing awareness of homeownership as a long-term asset are also key drivers of demand for subsidised housing,” said BP Tapera Commissioner Heru Pudyo Nugroho in Jakarta on 2 August 2026. He noted that the market outlook for subsidised housing in the second half of 2026 remains very positive. The high homeownership backlog indicates that the need for housing among low-income communities (MBR) is still substantial and has not been fully met. The government is strengthening financing support through the Housing Financing Liquidity Facility (FLPP) scheme, targeting the distribution of 350,000 subsidised housing units in 2026. BP Tapera noted that subsidised homes under the FLPP scheme are particularly popular among millennials and Gen Z. Realisation of FLPP fund distribution for subsidised housing last year (2025) reached 278,868 units, with approximately 62 percent accessed by Gen Z and millennials aged 19 to 30. This brings optimism that awareness among the younger generation to invest in long-term assets such as housing for their future remains high. Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) stated that the housing sector is a national development priority with a broad impact on improving public welfare. According to AHY, the programme is not just about building houses, but also about building hope, improving the quality of life, and strengthening the foundation for inclusive and sustainable development.