Preference and Willingness to Pay of the Millennial Generation in Indonesia for Low Energy Housing


Nowadays, Indonesia is one of the countries with the most significant rate of energy consumption in the world. In response to this, the government began to promote energy-saving movement through a housing program. However, this program has not achieved its maximum results due to the lack of an active role in the community. Therefore, the preference of generation Y or known as the millennial generation is significant because of its high population. They can contribute to the trend of future housing. This study was conducted to determine the level of interest and Willingness to Pay (WTP) of the millennial generation for low energy housing. The survey has used online questionnaires given to 121 respondents from varying levels of income. Low energy housing factor which is assessed by the millennial generation consists of location, accessibility, local materials, active technology, and cost-effectiveness. Regression and analysis of variance results show that WTP is not influenced by factors considered important by the respondents, but significantly by the income level. The higher the income, the higher the WTP. The level of WTP respondents with an income below and equal to Regional Minimum Wage (RMW) increases when the income level is above RMW. Respondents with an income level below RMW are interested in landed housing, while respondents with an income above RMW are interested in the vertical house. In conclusion, the millennial generation in Indonesia shows a strong interest and expectation for the development of low-energy housing.