ANALYSIS OF HOUSING PREFERENCES AND AFFORDABILITY BY GENERATION Z BASED ON PRICE TO INCOME RATIO IN JAKARTA REGION

• Main Author: Jeffrey Handopo, Josua
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57981
• Institution: Institut Teknologi Bandung

The uprising trend of house pricing in Indonesia has become a common and much-discussed phenomenon where it ultimately piques researcher’s attention. This particular issue brings a new problem, especially for Indonesian Gen Z that live in a big city like Jakarta, where they are struggling to find a home they can afford. Gen Z in this research will particularly focus on those who were born in 1995 to 2002 as they are the one from Gen Z that have already been included in the workforce with fixed income. This research will discuss Gen Z's housing preferences and affordability in having a house, using the price to income ratio in Jakarta. The method used in this paper is derived from Pradana (2020) and several other research related to preferences and housing affordability. Gen Z housing preferences' scope will mainly focus on aspects like the dweller's characteristics, product specifications, future considerations, and other supplemental factors, while the affordability aspect will be measured using Bourassa (1996) model. The data gathered through questionnaires will be further processed using PLS-SEM Analysis and SPSS. The research results show that the product specifications variables are the most influential for Gen Z followed by future considerations, supplemental factors, and dwellers characteristics. The affordability limits (AL) that are derived from the interest rate and term of loans from 5 banks that are being used in this research do not really affect the affordability index of Gen Z or become a pivotal factor. The results above can be used to provide insights and future references for companies and other stakeholders about Gen Z's housing/property preferences and their affordability index.