Scope of Work
Housing Market Research to Determine Business-Based Solutions to Ensure Adequate & Affordable Housing
Catholic Relief Services/Indonesia
1. Background
Indonesia faces a significant challenge with substandard housing, disproportionately affecting the poor and vulnerable. With a rapidly growing population, 9% or 26 million Indonesians live below the poverty line, and an additional 64 million are classified as near-poor. According to a 2020 World Bank report, 22 million households, nearly one-third of Indonesians, live in inadequate housing conditions with at least one substandard feature, such as poor building materials, lack of basic amenities, or overcrowding. This number could rise to 43 million households when assessed against stricter SDG criteria. Furthermore, Indonesian housing often employs materials that impact quality of life, health and safety. The use of substandard materials and poor construction practices further exacerbates the vulnerability of Indonesian housing to natural disasters. Between 2022 and 2023, the National Disaster Management Agency recorded the damage or destruction of nearly 143,000 housing units due to natural disasters.
As a 2021 CRS market assessment revealed, limited information on construction standards, a lack of quality construction services, insufficient housing finance, and low awareness of disaster risks contribute to Indonesia's substandard housing problem. CRS Indonesia's Homes and Communities (H&C) Platform aims to address these gaps by improving market functioning and enabling low-income households in Greater Jakarta to access safe and dignified homes. CRS aims to influence market actors, peer agencies, and governance systems to implement innovative and localized approaches that prioritize the needs of the poor and vulnerable, ensuring housing solutions work for them.
To effectively address the complex issue of substandard housing, a deep understanding of the housing market is crucial. Through Housing Market Research, CRS hopes to identify key barriers and opportunities to develop innovative, business-based solutions for affordable and dignified housing. By delving into the dynamics of the housing market, we can identify strategies to influence market actors, strengthen supply chains, and ultimately improve the lives of low-income households. This knowledge will be instrumental in developing compelling business cases and securing the buy-in of key market actors to scale up effective solutions.
This SOW is designed to solicit for experienced technical experts or firms with relevant market knowledge and proven experience in market research.
2. Purpose / Justification
The housing market in Indonesia is complex and multifaceted. While there is a perceived demand for affordable materials and housing services, construction professionals, manufacturers, suppliers, and distributors often prioritize more lucrative market segments. This research will help generate a deeper understanding of the low-income housing market in Indonesia and develop targeted interventions to improve access and affordability for this population segment, ultimately contributing to creating a more inclusive and equitable housing market. Specifically, the research will contribute to identify housing needs, preferences, and willingness to pay of low-income households in Indonesia, while providing insights into the market size and demand patterns, and the opportunities and barriers for market actors delivering products and services to low-income households. This research aims to respond to the following sub-questions:
· What are the key socio-economic and demographic characteristics of low-income households, and how do these characteristics influence their housing needs and preferences?
· How do income and expenditure patterns impact low-income households' housing decisions, such as type of housing, renovation/retrofit preference, and housing improvement material/product/brand preference?
· What is the current and projected demand and market size of affordable housing improvement products and services in the target market, and what factors influence this demand?
· What are the key barriers and opportunities for private sector involvement in affordable housing development and finance in the target market?
3. Target Market
The research is targeted to be conducted among:
· Consumer Income Level Status: Low- and Middle-Income Households (Renters and Homeowners).
· Geographic Locations: Suggested locations include Banten and West Java Provinces. Applicants may propose specific locations within these provinces or other regions that meet the following criteria: high concentrations of low- and middle-income households and a growing housing market.
4. Methodology
The consultant is expected to employ a mixed-methods approach to gain a comprehensive understanding of the low and middle-income housing market in proposed locations. Data collection techniques should collect data on demographic information, housing preferences/needs, affordability constraints, awareness of housing products, services and programs and other market insights. This may include surveys, interviews, and focus group discussions with consumers, including government officials, developers, financial institutions, and low-income households. This approach may include:
Surveys and Polling:
· Quantitative Research: Using structured questionnaires to collect numerical data from a large sample size.
· Qualitative Research: Employing in-depth interviews, focus groups, or online surveys to gather rich qualitative insights.
Data Analytics:
· Leveraging advanced data analytics techniques to analyze large datasets from various sources to identify patterns, trends, and insights on consumers, producers, suppliers and manufacturers.
Observation Research:
· Observing and recording consumer behavior in natural settings to provide insights into real-world actions and preferences, and understand housing conditions, infrastructure, and community dynamics in target areas.
The applicant should provide a detailed methodology in their proposal, including a rationale for selecting the proposed approach. This rationale should explain how the chosen methods will effectively address the research questions and provide actionable insights.
5. Tasks
The primary tasks and responsibilities are:
Project Initiation and Planning
- Literature Review: Conduct a comprehensive review of relevant literature, reports, documents and secondary data to gain understanding of the context and housing market.
- Work Plan Development: Prior to commencing data collection, develop a detailed work plan outlining the project methodology, data collection tools, sampling design, and timeline for data collection. Conduct regular meetings with Technical Advisors and other staff to align on project objectives and ensure effective coordination.
Market Research: Data Collection and Analysis
Research and assessment of market conditions will be done using a sample size of low and middle-income consumers to establish housing demands, preferences, product and service offerings, product pricing, etc.
- Fieldwork: Manage field-level data collection activities, ensuring adherence to the approved methodology and data collection tools.
- Data Analysis: Conduct a rigorous analysis of both primary and secondary data to identify key trends, patterns, and insights.
Report Production:
- Report Writing: Prepare a comprehensive report summarizing the findings, analysis, businesses cases and actionable recommendations based on market research findings. Structure to be determined in discussion with CRS' Technical Advisor and Head of Programs.
- Present the findings and recommendations to CRS project staff.
6. Deliverables
The following will be the deliverables expected from this assignment:
- Deliverable 1: Inception report that includes all preparatory work such as review of relevant documents, data, literature, etc., detailed work plan including methodology, sample size calculations, assessment tools, activities and timeline.
- Deliverable 2: Draft research report comprising analysis of the housing market, including clear recommendations.
- Deliverable 3: Final report in English after incorporating CRS' feedback and comments.
7. Implementation Timeframe
This market research will be implemented over a maximum of 3-month period, starting February 2025 and ending in April 2025. The final report shall be submitted no later than 15 April 2025.
The assignment is planned for an estimated total of 30-35 working days as follows:
· Desk research, preparation (research design), initial calls/discussions with CRS: 5 days
· Market research & data collection, including field assessments and travel: 21 days
· Analysis and submission of draft report to CRS: 3 days
· Submission of final report after incorporating feedback from CRS: 3 days
8. Schedule of Payments
The total amount quoted shall be all-inclusive and include all costs components required to perform the deliverables identified in the SOW, including professional fee, travel costs, communication costs, VAT/taxes and any other applicable costs to be incurred in completing the assignment. The contract price will fixed, output-based price regardless of extension of the herein specified duration. Payments will be done upon completion of the deliverables/outputs and as per below percentages:
· Deliverable 1 Inception Report: 20% of total contract amount
· Deliverable 2 Draft Report: 20% of total contract amount
· Deliverable 3 Final Report in English and presentation of findings: 60% of total contract amount
Payments will be made within two weeks upon receipt and approval of the deliverables and submitted invoices.
9. Expected Qualifications
The required skills and competencies for the applicants are:
· Proven experience in conducting similar research projects, particularly in the housing and development sector.
· Specific knowledge and expertise in housing for middle and low-income households (desirable).
· Strong understanding of qualitative and quantitative research methodologies, including survey design, data collection, and analysis.
· Skilled research team with expertise in relevant fields like economics, sociology, and urban planning.
· In-depth knowledge of the Indonesian market, cultural nuances, and local context.
· Ability to present findings clearly and concisely in a well-structured report.
· Strong analytical and communication skills, with the ability to explain complex problems or concepts in simple and easy-to-understand language.
· Demonstrated ability to work with a broad range stakeholders from diverse backgrounds.
· Proficiency in English and Bahasa Indonesia (both written and oral).
10. Ethics and Safeguarding
CRS is committed to ensuring that the rights of those participating in data collection or analysis are respected and protected, in accordance with CRS' Safeguarding Policy. Applicants are expected to follow CRS' ethical and safeguarding guidelines, including but not limited to data collection processes, which should be incorporated into the workplan. Specifically, the research firm shall explain how appropriate, safe, non- discriminatory participation of all stakeholders will be ensured and how special attention will be paid to the needs of vulnerable groups. The research firm shall also explain how confidentiality and anonymity of participants will be guaranteed.
11. Application
CRS will coordinate the application and hiring process locally. Applicants with relevant expertise and experience are invited to apply for the assignment by sending:
1. Letter of Interest (in English, not exceeding 2 pages)
2. Technical Proposal (in English, not exceeding 15 pages), including: a) description of the firm's capabilities and qualifications in response to the SoW, and information on current and previous relevant work and clients/users; and b) methodology and approach to completing the assignment; and c) background/ qualifications of personnel involved in the assignment and their key responsibilities/roles. CVs of team members can be included in an Annex that is not part of the page limit given that each CV does not exceed 2 pages.
3. Financial Proposal that is all-inclusive cost for completing the assignment, including VAT/tax.
Complete proposals should be submitted electronically to Indonesia_HR@crs.org mentioning [Home and Community Assessment] in the email subject. Incomplete proposals may not be considered. Required documents shall be submitted no later than 31 December 2024.
Only shortlisted applicants will be notified and invited for presentations.
For any clarification regarding this assignment please write to Rivaldho, Abdul Aziz: abdulaziz.rivaldho@crs.org.
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