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| Novita Ratna Satiti, S.E., M.M. (Photo : Special) |
In 2024, more reports indicate that Generation Z is struggling with challenges in owning a home. Economic and social factors contributing to this phenomenon make the dream of homeownership seem increasingly difficult to achieve. Novita Ratna Satiti, S.E., M.M., as a lecturer in Management at Muhammadiyah University of Malang (UMM), revealed that one of the main factors making it difficult for Gen Z to own homes is the high property prices.
"In recent years, house prices have been continuously increasing significantly, while average incomes have not seen a corresponding increase. Moreover, rising living costs and continuous inflation also pose significant barriers," she said.
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Additionally, the economic situation, especially post-pandemic, greatly affects Gen Z's ability to own homes. Many of them work in the informal sector with gig economy labels or short-term recruitment systems that do not provide health benefits, child education, and retirement benefits. According to Novi, if we look back, there is a significant difference between the challenges faced by Generation Z and millennials. For example, the salary increase for millennials is much more stable compared to Gen Z, who often have to deal with wage stagnation.
"Moreover, millennials enjoyed easier access to credit and loans in their time, while Gen Z is now faced with stricter requirements and higher interest rates," she explained.
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Nevertheless, there is unique potential that can be developed in terms of financial management. Moreover, Gen Z tends to be more tech-savvy and should be more aware of the importance of early investment. "For example, investment apps like Bibit and Ajaib make it easier to start investing with small capital and provide relevant financial education," she added.
However, knowledge and skills in using technology should also be accompanied by good locus of control and behavioral finance. Simply put, locus of control means Gen Z has control over financial decisions and is not easily influenced by external factors, such as lifestyle pressures and the convenience of Pay Later apps.
"Meanwhile, understanding behavioral finance can also help them recognize and avoid mistakes in financial decision-making, such as tendencies for impulsive shopping or taking unnecessary risks," she emphasized.
As for what Gen Z can do, it's about enhancing their skills and education rather than allocating money for unnecessary entertainment activities. This approach can open up better and more stable job opportunities. Even seeking additional sources of income while studying, such as freelancing, online businesses, or part-time jobs, can help sharpen skills and accelerate fund accumulation to buy a house.
"Furthermore, utilize various scholarship programs. For example, the Magenta program (Talented Generation Internship), the Young Entrepreneur Program (WMM), and programs from other independent institutions. These programs not only provide additional opportunities for learning and development but can also provide the necessary financial support to help Gen Z achieve financial success more quickly and effectively," she suggested.
Finally, Novi advises Gen Z to live within their financial means and avoid unnecessary debt. Moreover, it is important to set clear financial goals. These goals are not only limited to buying a house but also include short-term plans that require careful financial planning. (lai/wil/fajr)
