Affordability in housing is often defined by the ratio of purchase price or rent, to total household income. At present, public low-cost housing units in Malaysia are sold or rented at below market price value being subsidized by the government. This housing affordability definition overlooks other important issues such as long-term operational costs, where a typical low-income household spends a substantial share of monthly income on energy and utility services such as electricity and water. Consequently, the apportionment or percentage of average household income spent on operational household expenditure such as rent, electricity and other utilities are investigated in this paper, by using a survey questionnaire and interview techniques. This paper presents a brief overview to how low-cost housing can contribute to sustainable development in terms of long-term operational affordability for social and economical sustainability.

Rapid urbanization and the scale of new buildings constructed in Malaysia demonstrate an urgent need for change in policy and mode of operation. The government’s response to the increasing housing demand in urban areas for the lower-income population is manifested through low-cost housing projects, in subsidized sale price and/or low monthly rental. This current definition of low-cost housing excludes other operational costs such as energy and water utilities, therefore long-term affordability remains uncertain. Consequently, operational affordability of public low-cost housing, in terms of apportionment/percentage of average household income spent on operational household expenditure such as rent, electricity and other utilities is reported in this paper.

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