Determinant residential real estate of millennial generation in adapting housing microfinance case Indonesia chapter

• Published in: International journal of housing markets and analysis 2023-08, Vol.16 (5), p.1007-1020
• Main Authors: Subagyo, Ahmad, Syari’udin, Akhmad, Yunani, Akhmad
• Format: Article
• Language: English
• Subjects: Demand; Drinking water; Education; Expenditures; Families & family life; Financial institutions; Financial management; Food consumption; Households; Housing; Housing developments; Housing needs; Microfinance; Millennials; Real estate; Real variables; Research centers; Robustness (mathematics); Rural areas; Sanitation; Target markets; Urban areas
• ISSN: 1753-8270; 1753-8289; 1753-8270
• DOI: 10.1108/IJHMA-04-2022-0063

Purpose This study aims to analyze the variables that affect residential real estate demand by millennials based on hedonic demand functions. Design/methodology/approach The method of analysis in this study is robust regression ordinary least square using cross-sectional data from Indonesian Family Survey Wave 5 (IFLS-5) with a sample of 1.672 households of male married millennials. Findings The aspect of millennial generation characteristics is significant on the variables of income, number of dependents, education level and presence of millennial generation in urban and rural areas. While the variable of age of the millennial generation does not significantly influence expenditure for residential real estate. All aspects of the millennial generation’s spending behavior consisting of spending on food consumption, education, health, telephone and internet, transportation, recreation and the variable of the presence of urban and rural millennial generations significantly affect the spending of the millennial generation for residential real estate with the assumption of ceteris paribus. Research limitations/implications The implication of this study brings together the characteristics of the millennial generation with the aspect of behavior to expenditure for residential real estate assets relevant to the needs of the housing microfinance market. Practical implications In this study, it was found that the character and behavior of the millennial generation towards spending on residential real estate can be factors in determining policies by both the government and financial institutions that will serve the millennial generation through housing microfinance. Social implications This implication study, it was found that the needs and behavior of the millennial generation towards the demand for housing microfinance principles according to their character and behavior. Originality/value The difference between the results of this study and previous studies is possible because previous studies did not differentiate the unit of analysis for the millennial generation.