Affordability of Affordable Housing in the Northern Region of Malaysia

The problem of affordable housing has emerged as a significant concern in urban centers, particularly in emerging countries. While each country defines affordability differently, housing affordability refers to the capacity to possess a residential property or dwelling that satisfies fundamental living requirements about its price, standard, and whereabouts. However, the majority of individuals and families with lower to moderate incomes, residing in various urban areas across Malaysia find it difficult to purchase a home.

This research aims to evaluate the housing affordability index in Malaysia’s Northern Region (Kedah, Pulau Pinang, Perak, and Perlis) by proposing a maximum affordable housing cost determined by income level. The findings revealed that the housing affordability index has deteriorated as a result of growing income-price inequalities. It is suggested that government or housing policymakers be responsible for establishing a fair housing price that is determined through convincing and widely accepted judgments. Establishing prices could be based on genuine supply and demand dynamics, rather than being influenced by unfair trading practices, manipulation, or exploitation.

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