AFFORDABLE HOUSING FOR THE Z GENERATION

Syafira Nurulita, Sayyidah Lathifah U.Z., Hafizh S.S.O.A.

Abstract House is a very important aspect in human life, as it is one of our basic needs.
However, rapid urban population expansion–which has resulted in a housing crisis and
inadequate urban living conditions–is a significant concern, especially in Indonesia. As the
young generation, the Z Generation is not exempt from these concerns. With a lot of young
adults in the process of settling down, house is an important factor to the equation. However,
with the housing crisis comes the question of whether or not they can afford buying a house
within their financial power–as it is well known that the Z Generation is especially struggling
with the economy more than its predecessors, mainly due to the COVID-19 pandemic. The fact
of the massively growing price of housing pressures the Z Generation to settle. Not only
affordability, the generation is also faced with concerns of the quality of these houses–whether or
not they enter the criteria of a healthy home, and if the area size affects the housing prices.
Affordable housing itself is generally understood as a housing that meets the needs of households
whose incomes are insufficient to provide their access to the market for a higher price range.
This condition directly affects the construction industry, as the implementation of consistent
procedures and techniques, the analysis and implementation of alternative techniques through the
use of technical advancements in the manufacturing industry as well as other fields have all been
influenced by current economic conditions. Planning for excess cost management must begin at
the early design phases and continue throughout the project life of the construction. This paper
will further elaborate on this matter according to several researches and journals collected by the
authors.
Keywords Affordability 𑁦 Housing 𑁦 Construction
1 Introduction

The construction industry is a good indicator of a country’s development. Indonesia’s real estate
market has grown rather significantly. Construction is currently included in the largest employer
of qualified and semi-skilled labor after agriculture, and it contributes significantly to the
nation’s economic growth. As employment prospects and labor migration have expanded, so has
the demand for housing space. Rapid urban population expansion, which has resulted in a
housing crisis and inadequate urban living conditions, is a significant concern for the Indonesian
government.
According to the Pew Research Center, the Z Generation consists of people born between
1997 and 2012. The Z Generation itself is the name given to the current generation of young
people by many demographic researchers. As this generation is currently undergoing a journey to
adulthood, it is no wonder that some of them are in the process of settling down. One of the
means is by buying a house. With this comes the question of whether or not they can afford
buying a house within their financial power–as it is well known that the Z Generation is
especially struggling with the economy more than its predecessors, mainly due to the COVID-19
pandemic. Deciding where to live not only depends on the specific area, but also on what’s
around the prospective home. Gen Z predominantly prefers to live close to work, school,
entertainment and nightlife but still considering the range of price.
The fact of the massively growing price of housing pressures the Z Generation to settle.
Moreover, the Z Generation mostly have trouble managing work, hobbies, and rent payment.
Affordable housing will surely be a huge workaround to assist those who are concerned with
housing issues. However, not only the affordability of houses comes into question, but also the
quality of these houses–whether or not they enter the criteria of a healthy home, and if the area
size affects the housing prices.
Affordable housing is generally understood as a housing that meets the needs of
households whose incomes are insufficient to provide their access to the market for a higher
price range. One of the fundamental necessities of individuals, families, and the environment is
decent housing. One of the accepted definitions of affordability is housing affordability, which is
calculated as a ratio of housing costs to household income.
In the construction industry, the implementation of consistent procedures and techniques,
the analysis and implementation of alternative techniques through the use of technical
advancements in the manufacturing industry as well as other fields have all been influenced by
current economic conditions. Planning for excess cost management must begin at the early
design phases and continue throughout the project life of the construction. It is important to
thoroughly examine the project and take into account all realistic possibilities in order to obtain
optimal costs.
2 Purpose and Objective

The purpose of this paper is to determine the affordability of housing for specifically the Z
Generation. Not only the affordability of housing, but also the quality of these houses–whether or
not they enter the criteria of a healthy home, and if the area size affects the housing prices. The
problem formulations of this paper are as follows.
1. Does the housing price in this era meet the buying power of the Z Generation?
2. How is the availability of the houses within the Z Generation’s buying power?
3. How does the COVID-19 pandemic affect the Z Generation in their financial struggles to
afford housing?
4. Do the houses within the Z Generation’s buying power enter the criteria of a healthy
home?
5. Does the house area size affect housing prices within the Z Generation’s buying power?
These problem formulations are asked in order to create a clear outline of the research
paper. They represent the main questions often asked as the foundation of the paper.

3 Literature Review

Research on affordable housing needs to be encouraged, especially during the post-pandemic era.
With the reviving economy, people–particularly the young generation–will start to settle down
and invest in housing.
Every Indonesian deserves a decent house for them to live in. Affordability, availability,
as well as the suitability of housing greatly depends on the construction industry. The industry
must back up the growing housing demand by implementing a good construction by thoroughly
examining the project and taking into account all realistic possibilities in order to obtain optimal
costs.

3.1 Z Generation

According to the Pew Research Center, the Z Generation consists of people born between 1997
and 2012. The Z Generation itself is the name given to the current generation of young people by
many demographic researchers. As this generation is currently undergoing a journey to
adulthood, it is no wonder that some of them are in the process of settling down. One of the
means is by buying a house. With this comes the question of whether or not they can afford
buying a house within their financial power–as it is well known that the Z Generation is
especially struggling with the economy more than its predecessors, mainly due to the COVID-19
pandemic. Deciding where to live not only depends on the specific area, but also on what’s
around the prospective home. The Z Generation predominantly prefers to live close to work,
school, entertainment and nightlife but still considering the range of price.

3.2 Construction Industry

The construction industry includes jobs in carpentry, road construction, bridge development, and
home design. This industry is one of the largest in the world because it is responsible for creating
the infrastructure for cities, towns, and countries. In the construction industry, the
implementation of consistent procedures and techniques, the analysis and implementation of
alternative techniques through the use of technical advancements in the manufacturing industry
as well as other fields have all been influenced by current economic conditions. Planning for
excess cost management must begin at the early design phases and continue throughout the
project life of the construction.

3.3 Affordable Housing

Affordable housing is generally understood as a housing that meets the needs of households
whose incomes are insufficient to provide their access to the market for a higher price range. One
of the fundamental necessities of individuals, families, and the environment is decent housing.
One of the accepted definitions of affordability is housing affordability, which is calculated as a
ratio of housing costs to household income.

3.4 Healthy Home

Affordability is important in housing purchase. However, the quality of the house itself must be
investigated, especially the size and health aspects. The Z Generation consists of young adults
who are likely to start a family. Hence, a healthy home is a substantial aspect in housing
purchase. According to the US National Center for Healthy Housing, a healthy home is housing
that is designed, constructed, maintained, and rehabilitated in a manner that is conducive to good
occupant health. The elements of a healthy home include hygiene, safety, and well-built
ventilation.