Abstract

The urban expansion of Jakarta presents structural challenges for young adults in securing adequate and affordable housing. This article examines the influence of financial variables—including specifically income level, employment status, and travel-time preference—on the rental housing preferences of middle-class youth in the Greater Jakarta (Jabodetabek) region. Drawing on a quantitative survey of 450 respondents aged 20 to 39, the study evaluates the alignment between willingness to pay (WTP) and ability to pay (ATP) as indicators of actual affordability. The findings reveal a notable gap between WTP and ATP, especially among individuals earning IDR 5 to 9 million monthly, who frequently exhibit payment aspirations that exceed their financial capacity. Although landed housing remains the dominant preference, vertical housing built atop public facilities is conditionally accepted, provided it meets criteria of design quality, comfort, and accessibility. This study underscores the urgency of formulating rental housing policies that account not only for economic rationality but also for the aspirations and lifestyles of the emerging urban generation. By empirically identifying a consistent misalignment between financial capacity and housing aspirations, particularly among Jakarta’s young middle-income earners, this research offers new insights into how affordability tensions shape urban housing demand in Indonesia.