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The Potential of Fulfilling Middle Class Residential Needs through Co-residence

In order to support the government's program on the provision of affordable housing, the Jakarta Property Institute (JPI) initiated a research study "Potential for Meeting Demand for Middle Class Houses with Co-residence Type." To provide alternative solutions for housing provision in Jakarta. This study was prepared by the Head of the Housing and Urban Settlement Science Group & Adjunct Researcher at the Demography Institute, Faculty of Economics and Business, University of Indonesia, Ar. Joko Adianto, ST., M.Ars., Ph.D, IAI.

The executive summary of the study follows:

In Jakarta, the difficulty of occupying livable housing at affordable prices is not only experienced by the Low-Income Community (MBR), but also the middle class. Limited housing land and uncontrollably rising land prices are the main factors. Even so, the current housing policy is only aimed at MBR.

The increasing number of generation Y and Z in this era of economic uncertainty has made them a noteworthy target group for meeting their housing needs in the capital city. Without government policy intervention from the government, more and more people are unable to afford housing in the city. The price index of small houses from 2012-2021 was recorded to be higher than medium and large houses. If the data is projected to 2045, the small house price index will increase up to 3.5 times compared to the index in 2012.

The increasing price of housing that is not balanced with the increase in household income and the increasing dependency ratio of the elderly to the productive age group, has given rise to a new type of housing, namely co-residence. Co-residence has emerged in several cities as an alternative housing solution and is understood as a way of living in a house across generations to provide social and financial support to each other. This is because housing insufficiency is not just about less supply than demand, but a mismatch between the types of housing offered and what people need. (Gurran & Phibbs, 2015; Jacobs, 2015).

Simulation of the potential availability of the number of dwelling units with the application of co-residence for non-MBR groups in regular housing and located on 10,000 hectares of land shows that 1,886,000 dwelling units can be built. The simulation is calculated if the dwellings are built vertically as high as 4 (four) floors.

The reorganization of the zoning ordinance is significant in order to adapt the co-residence type of housing. Up to now, zoning for housing has only been reserved for single-family. Meanwhile, the concept of co-residence requires the establishment of regulations for multi-family housing into a type of residence that will be translated into the zoning regulations of the DKI Jakarta Provincial Government.

In addition, co-residence development requires adjustments to spatial aspects, as well as social aspects, financing, ownership systems including long-term leases, and licensing.

Full report of research results: Book Potential to Fulfill Demand for Middle Class Co-residence Homes

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