The majority of new houses in urban Indonesia are built by contractors or financed by homeowners from their savings. Only about 200,000 to 240,000 units are financed through mortgage finance per year out of a total requirement of 800,000 units: roughly half to 40 percent of which receive a mortgage-linked subsidy. Many homeowners use short-term loans to finance the construction of their homes from one of the many microlending institutions, but no data is available on the actual size of this type of lending and no special housing micro-finance product exists.

The construction of homes is close to the national requirement for new housing. Housing prices are not showing signs of an overheated market and house price–to–income ratios (3 to 3.6) and the overall CPI, appear modest.