Factors Determining Decision to Rent Low-Cost Flats (RUSUNAWA)

The purpose of this study is to analyze and to provide suggestions to the government as developers and managers of RUSUNAWA to make it more effective and efficient in building and managing it. This research was conducted in three locations of rented low-cost flats in North Sumatra, namely RUSUNAWA Kayu Putih, RUSUNAWA Seruwai Belawan, and RUSUNAWA Binjai. The majority of respondents in this study were women who were in the productive age group of 30–40 years, but economic difficulties forced them to live in low-cost flats. This phenomenon shows that in the productive age poverty also occurs. This research applied a quantitative descriptive method by selecting three locations of RUSUNAWA in two cities in the North Sumatra Region and involving 200 tenants as respondents. The data was obtained by observing, interviewing, and distributing research questionnaires, and then were processed by SEM-PLS. The results showed that the factors determining the tenants to rent RUSUNAWA in North Sumatra Province are convenience, attractiveness, sanitation, cleanliness, design, and the location offered. It indicates that a healthy and clean environment, the condition of the building, and the facilities offered become the priorities for the tenants.