Jurnal Ekonomi Kuantitatif Terapan
Vol. 19 No. 1 (2026): Vol. 19, No. 1, Februari 2026 (pp.1-233)

Affording Homes in Yogyakarta: An Empirical Analysis of Local Housing Market Affordability

Bagaskara (Sekolah Vokasi Universitas Gadjah Mada)
Yudistira Permana (Sekolah Vokasi Universitas Gadjah Mada)
Maygsi Suwandi (Fakultas Ilmu Sosial dan Ilmu Politik UGM)



Article Info

Publish Date
28 Feb 2026

Abstract

Issues surrounding the difficulty of buying a house for local people in the Special Province of Yogyakarta are undeniable. This raises the question: can local residents afford a decent house? This study aims to develop a framework to describe housing affordability using surveys and econometric methods. A hedonic price model was created based on data from 174 houses in urban areas in Yogyakarta. This model estimates house prices considered appropriate, derived from a survey of 283 local residents who do not own a house. The results indicate that local residents cannot afford to buy a house. The regression model estimates house prices higher than the mean or median values of respondents' perceptions of affordability. Surveyed respondents deemed houses with minimum specifications as follows: a lot size of 53.6 m², building size of 89.4 m², front road width of 4.4 m, and a distance of 2.7 km to shopping facilities. The estimated price for such housing ranges between IDR 300,000,000 and IDR 400,000,000. These findings highlight a gap between market prices and local affordability. The government can use these specifications as input to design policies that provide affordable housing for local residents in Yogyakarta

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Journal Info

Abbrev

jekt

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Kuantitatif Terapan is a journal that is focused as an empirical means of publication of scientific papers with emphasis contents of the article on the use of quantitative analysis tools (econometrics, parametric and non-parametric statistics, descriptive statistics, input-output, ...