Analysis of the Effects of Income Level, Education Level, Employment, House Price and Housing Location on the Demand for Subsidized Housing in Sei Mencirim Village

Abstract

This research aims to analyze the effects of income level, education level, employment, house price and location on the demand for subsidized housing in Sei Mencirim Village. This research employs primary data obtained from interviews (filling out questionnaires) with 90 people from a total of 878 consumers of subsidized housing morigages in Sei Mencirim Village, Deli Serdang Regency. This research employs Structural Equation Model (SEM) approach based on Partial Least Square (PLS) Method. PLS is a Structural Equation Model (SEM) which is based on components or varians. The result indicates that income level, education level and employment have a positive and significant effect on the demand for subsidized housing respectively. Meanwhile the house price and location also have a positive but insignificant effect on the demand for subsidized housing respectively. In spite of an insignificant effect of house price and location, it shows a pattern of directly proportional data. This means that the higher the house price or the more strategic the location, the demand for subsidized houses will also increase. Keywords: Income, Education, Employment, Price, Location, Demand