Housing shortage is a persistent global challenge: people’s need for homes is not met because supply is lacking or unsuitable. In wealthy countries, the problem often stems from strict permits, delayed planning processes, and shifting household structures that increase demand for smaller homes. In rapidly urbanizing countries, the reverse is true: population growth outpaces the formal sector’s ability to build, leaving millions without adequate housing and forcing many to build informally. This mismatch between need and supply is what we call the housing backlog. In Indonesia, despite decades of growing private sector involvement in housing production, the backlog remains enormous (nearly 17 million units nationwide). This dissertation investigates why formal housing production still fails to meet demand and why many households remain priced out. The findings reveal that while government housing policies aim at affordability, they are undermined by weak enforcement and delays, while private developers often pursue speculative projects that bypass low-income groups. Bridging this gap requires stronger land policy enforcement, transparent planning, and better incentives for affordable housing. These lessons also resonate with other fast-growing countries facing similar challenges.
Dian Rahmawati (born 1982, Surabaya) is a lecturer at the Department of Urban and Regional Planning, Institut Teknologi Sepuluh Nopember (ITS), one of Indonesia’s leading state universities. She earned her Bachelor’s and Master’s degrees in Architecture from ITS, specializing in Urban Housing, Settlements, and Environment. Before moving into academia, she worked as an architect on the Surabaya International Airport Construction Project and gained professional experience with urban design firms in Osaka, Japan, and Melbourne, Australia. In 2020 she began her PhD at Radboud University, focusing on housing provision, land governance, and urban development in Indonesia. Her current research explores how public policy and private housing markets interact in shaping housing provision. Alongside her academic work, she actively supports municipalities in developing planning policies and previously served in the Indonesian Planning School Association.