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Young People Are Increasingly Interested In Owning Homes, According To Rumah123's Report On Trends For 2024

In 2024, young Indonesians are excited about achieving their dream homes. The 123 Property Recap 2024: The Youth Moves report by Rumah123 reveals a shift in interest among the youth. Previously, many preferred renting, but now more are recognizing the importance of home ownership.

Current data shows that 75% of property seekers on Rumah123 are from the younger generation. The report categorizes them into three age groups: 18-24 years, 25-34 years, and 35-44 years. In comparison, the next largest group of home seekers is those aged 45-54 years.

Marisa Jaya, Head of Research at Rumah123, stated that since mid-2021, the demand for rental homes among young people grew faster than for homes for sale. For instance, by the end of 2021, the demand for homes for sale dropped by 41.4% year-on-year, while rental demand increased by 1.5%. Starting in February 2024, the demand for homes for sale surged by 78.6%, outpacing the 59.2% growth in rental demand. This trend continued through September 2024.

However, as the year ends, the annual growth in rental demand is recorded at 8.4%, while the demand for homes for sale has only slightly increased by 0.7%. This slowdown in property transactions is linked to young people's focus on other priorities, such as preparing for travel and shopping for the upcoming Christmas and New Year celebrations in 2025.

Young People View Homes as Long-Term Living Options

Rumah123 has noted an interesting trend in home preferences based on age. For landed houses, both young and older generations tend to prefer buying homes (either new or second-hand) over renting.

The age group of 18-24 years shows that 51.6% prefer buying second-hand homes, 26.2% are interested in new homes, and 22.2% choose to rent. A similar trend is seen in the 25-34 age group, where 55.1% opt for second-hand homes, 22.8% for new homes, and 22.1% prefer renting. The 35-44 age group also shows interest in second-hand homes at 57.6%, with 23.3% looking for new homes and 19.2% choosing to rent.

However, the trend changes when it comes to apartments. Younger age groups show a higher interest in renting apartments, with 30% or more in the 18-24 and 25-34 age brackets. In contrast, older age groups tend to prefer buying apartments, whether new or second-hand.

Marisa explains that young people often view apartments as a flexible temporary housing solution that fits their dynamic lifestyle. They tend to rent due to high mobility or because they are not yet financially ready for long-term commitments. On the other hand, older individuals are more likely to buy apartments, as they have more stable finances and seek long-term investment and stability.

Younger generations tend to favor more affordable homes. Generally, houses priced between Rp1-3 billion are popular across all age groups, followed by those priced between Rp400 million and Rp1 billion. However, younger buyers show a higher preference for cheaper homes. Among those under Rp400 million, 18.8% of the 18-24 age group are interested, while 15.5% of the 25-34 age group are as well. In comparison, 14% of the 35-44 age group and 12.4% of the 45-54 age group show interest. In the Rp1-3 billion price range, older age groups have a larger share of interest.

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Tag: Marisa Jaya Rumah123