Gen Z and Millennials Increasingly Purchase Simple Homes in Early 2024

Pinhome Indonesia's research reveals differences in the types of houses purchased by Generation Z, Millennials, and Generation X. Pinhome states that these differing preferences also reflect economic disparities among the three generations.

Gen X (born 1965-1980) chose modest homes (under Rp200 million) in 18% of total home sales in Pinhome's database in Q1 2024.

Furthermore, 40% of Gen X chose lower-middle-range homes (Rp200 million-Rp600 million), and another 40% opted for upper-middle-range homes (Rp600 million-Rp3 billion). Only 2% chose luxury homes (over Rp3 billion).

"Generation X tends to choose lower-middle and upper-middle-range homes, which is naturally linked to more stable economic conditions and relatively higher incomes," wrote Pinhome in a report cited on Monday (7/10/2024).

Generation Y or Millennials (1981-1996) chose modest homes in 30% of cases. Another 36% chose lower-middle-range homes and 33% chose upper-middle-range homes. Only 1% of Millennials chose luxury homes.

Meanwhile, a higher percentage of Gen Z (1997-2012) chose modest homes, at 42%. This is the highest proportion among all generations.

The remainder, 29%, chose lower-middle-range homes, and another 29% chose upper-middle-range homes. No Gen Z buyers were recorded purchasing luxury homes in the Pinhome database.

"This reflects an early life stage, still in the process of building a career, where homeownership is a priority despite financial limitations," Pinhome stated.

This report's data is sourced from Pinhome's database, encompassing over 1 million housing inventories and partnerships with more than 20 banks and financial institutions. Pinhome supplements this with reliable external data, synthesized and analyzed using various statistical methods.

The following are Pinhome Indonesia's house type classifications:

* Modest homes: Under Rp200 million
* Lower-middle-range homes: Rp200 million-Rp600 million
* Upper-middle-range homes: Rp600 million-Rp3 billion
* Luxury homes: Over Rp3 billion

(Also read: [Generations Without Homes Until 2022, Millennials the Most](https://databoks.katadata.co.id/properti/statistik/66faa253ed88b/generasi-yang-tak-punya-rumah-hingga-2022-milenial-terbanyak))