In today’s fast-paced world, deciding whether to buy or rent a home is a crucial choice, especially for young adults.
According to our recent research, 71% of Gen Z and Millennials in Indonesia are keen on purchasing a home [1], with the majority (62%) expressing a preference to buy in cash. Here, we’ll dive into the key insights on what this generation looks for in a “dream home,” preferred sizes, and budget constraints.
Key Factors in Choosing a Dream Home for Gen Z and Millennials in Indonesia
When it comes to buying a home, several factors are highly valued by young Indonesians:
- Safety and Community (33%)
The most critical factor is a safe neighborhood with friendly and supportive neighbors. This priority highlights the importance of community and security. - Location Proximity (22%)
Many young Indonesians prefer homes in strategic areas close to their workplace, campus, or children’s schools, showcasing a preference for convenience and reduced commute times. - Personal Style and Design (22%)
Aesthetic and functional design that aligns with their style and needs also ranks highly. This generation seeks homes that are both practical and visually appealing. - Affordability (16%)
Cost is a crucial factor, with a portion of buyers looking for budget-friendly options. - Tranquility (7%)
Lastly, some Gen Z and Millennials want homes in quieter, more peaceful areas away from the city hustle, emphasizing the desire for a balanced lifestyle.
Ideal Home Sizes for Indonesian Gen Z and Millennials
Home size preferences vary widely within this demographic. Here’s a breakdown:
- Large Properties (over 1 hectare): 19% favor extensive properties for spacious living.
- Medium-Large Properties (700 to 1000 m²): 42% prefer moderately large properties, a popular choice.
- Medium-Sized Properties (400 to 600 m²): 24% are comfortable with medium-sized homes, providing enough space for various needs.
- Small-Medium Properties (100 to 300 m²): Only 8% prefer smaller homes.
- Tiny Properties (under 100 m²): A minimal 7% choose compact living spaces, reflecting a trend towards larger homes.
Budget Preferences Among Indonesian Gen Z and Millennials
Budget constraints shape the home-buying decisions of Gen Z and Millennials in Indonesia. Here’s how the budget preferences break down:
- Affordable Homes (IDR 100 million – IDR 900 million): This category is most popular, with 79% looking for homes within this range.
- Mid-Range Homes (IDR 1 billion – IDR 2 billion): 13% have a slightly higher budget for purchasing property.
- High-End Homes (IDR 2 billion – IDR 3 billion and above): Only 4% in each segment are willing to spend over IDR 2 billion, showing that high-end homes are less desirable for this generation.
For Gen Z and Millennials in Indonesia, owning a home is more than just a financial investment; it represents safety, convenience, and a place that aligns with their lifestyle. This generation shows a strong desire to buy, rather than rent, and prioritizes community, location, and design within their budgets. Understanding these preferences is crucial for real estate developers, agents, and policymakers aiming to meet the evolving needs of young Indonesians in the housing market.
For more information, contact us at partners@snapcart.global .
Sources:
[1] https://snapcart.global/buy-or-rent-part-1/
