Factors Affecting the Demand for Housing Affordability among the Middle-Income Groups

Housing affordability has been a major concern in Malaysia, especially in cities like Kuala Lumpur and Selangor. Purchasing a “dream home” is one of those life accomplishments that top nearly everyone’s bucket list. Searching for a home comes with different considerations; a range of different factors can influence housing market outcomes. In the long run, house prices will tend to converge to the cost of new housing construction. Therefore, this study aims to identify the determinants affecting the purchase decision among middle-income groups.

The data was collected through a questionnaire survey that was distributed in the Klang Valley area. The data was gathered and then analyzed using descriptive analysis and inferential statistical tests. Findings identified factors that have driven up the demand for housing, and in particular for home ownership, in recent years. It reveals that the affordable house price factor is the most important consideration in buying a house. This study would shed light on the developers in developing housing schemes based on the consumers’ preferences and could become a basis for the government to revise the current housing scheme policy’s design specifically in Malaysia.

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