Despite being receptive to new ideas, Malaysian housing developers must be responsive to the demands imposed upon the industry. One of the external factors that influence the growth of housing development firms is the intervention of the government. The role of government in shaping the housing industry is especially pertinent because most land matters involve dealing directly with local and state authorities. The regulations imposed by the government are perceived as imbalanced and serve only to increase the challenges confronted by housing developers to maintain their survivability. This paper is therefore aimed at disclosing the related challenges faced by housing developers with respect to current government issues. Appropriately, 10 Malaysian housing developers were interviewed to determine the reasons for their success in achieving business sustainability, including eliciting responses about the myriad of challenges faced. To analyze the findings, a qualitative approach was used that is based on the content analysis method. All the interviewees highlighted several challenges that have impeded their progress in the management of the housing development business. Interestingly, the most notable challenge revealed by the respondents is related to the vagaries of government rules and processes. Among the grievances mentioned by the participants were late approvals, sudden changes in rules, non-uniform compliances, and other similar issues.