Determinant factors of urban housing preferences among low-income people in Greater Jakarta
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 1 September 2021
Issue publication date: 1 December 2022
Abstract
Purpose
High numbers of housing backlogs as well as inadequate housing for low-income are one of the Indonesian government’s major concerns, especially in urban areas where the price of house is high. This study aims to identify low-income communities’ preferences on house ownership status, renting or buying and house provider, public or private, in Jakarta and surrounding areas.
Design/methodology/approach
This study adapts Longley multistage choice model in the Indonesian context to analyze people’s preferences in choosing a place to live in urban areas. This study analyzes two choices of models which are aspects of homeownership (buying or renting) and aspects of residential types (private or public).
Findings
Using data collected through a survey of 1,000 households in greater Jakarta (Jakarta, Bogor, Depok, Tangerang, and Bekasi), this study found that households which have fixed employment status, an older age, a larger number of family members, higher level of education and literacy in housing policy, accessible house location and more affordable to own house have a higher probability to choose to own a house. In addition, education level, age, and family size are major determinants of a household’s decision to occupy a public house rather than a private house. The findings provide basic input to government development programs in designing housing policy for low-income people.
Originality/value
There are only a few studies related to house-ownership preferences in low-income people, especially in developing countries, including Indonesia. This study contributes to the housing studies literature by strengthening empirical evidence from developing countries that have large populations and mostly live in urban areas.
Keywords
Acknowledgements
The authors would sincerely thank the editor and three anonymous reviewers for their valuable comments to improve this paper. The authors would like to thank National Development Planning Agency – Republic Indonesia, for providing opportunities for discussion and supporting this research.
Citation
Hartono, D., Irawan, T., Khoirunurrofik, K., Partama, R., Mujahid, N.W. and Setiadestriati, D. (2022), "Determinant factors of urban housing preferences among low-income people in Greater Jakarta", International Journal of Housing Markets and Analysis, Vol. 15 No. 5, pp. 1072-1087. https://doi.org/10.1108/IJHMA-05-2021-0056
Publisher
:Emerald Publishing Limited
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