Analyzing the Gap between Vertical Housing Demand and Supply in Magelang City, Indonesia: A SEM Analysis

Lingga, Doriani and Brata, Aloysius Gunadi Analyzing the Gap between Vertical Housing Demand and Supply in Magelang City, Indonesia: A SEM Analysis. [Research] (Unpublished)

Text (Doriani Lingga, A. Gunadi Brata) EP00965(PEN).pdf Download (2MB)

Abstract

The growing population has led to an increasing demand for housing in Magelang City, Indonesia, especially for the lower income societies. Despite the efforts of the local government to provide housing aid through vertical housing, the demand for vertical houses is still relatively low, proven by the low occupancy level of the current available vertical houses. This paper applies SEM to analyze the gap between vertical housing supply and demand in Magelang City, Indonesia. The data is gathered using questionnaires distributed to 100 respondents as the target of housing aid in Magelang City. The analysis is conducted using four latent variables: social economy, perception, promotion and decision and applying Confirmatory Factor Analysis (CFA) with additional three variables in the supply side: price, facilities and occupancy. This paper shows that from the demand side, the societies’ decision in choosing vertical house is affected by their perception on vertical houses. Meanwhile, from the supply side the occupancy level of vertical house is affected by its facilities. These two variables then explain the gap between demand and supply of vertical housing in Magelang City.

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