Behind the Rising Costs: Project-Level Factors Shaping the Affordability of Housing in Kartasura

Abstract

The continuous increase in housing demand has pressured developers to maintain a balance between project feasibility and market affordability. In Kartasura District near Surakarta, the selling prices of residential projects, including housing, have risen sharply and now exceed the purchasing capacity of households earning around the regional minimum wage. This situation underscores the importance of effective project management strategies to control costs while sustaining competitiveness in the housing market. The aim of this study is to examine the project-related factors that influence the selling prices of housing and to identify which of these factors have the greatest impact on developers’ pricing decisions. A mixed-method approach was applied, involving 60 housing developers selected through purposive sampling. The data were analyzed using multiple linear regression with SPSS version 27. The results show that land area, house type, location, supporting facilities, physical quality, accessibility, design concept, marketing strategy, transportation convenience, and land price significantly affect selling prices. Among these, design concept, marketing strategy, and transportation convenience emerged as the most influential factors. The findings reveal that the success of affordable housing projects depends not only on construction efficiency but also on managerial decisions and strategic planning throughout the project cycle. This study contributes to the field of project management by providing practical insights that can guide developers and policymakers in creating housing projects that are both financially feasible and affordable for the target market.