An assessment of housing affordability at district level for the state of Selangor

Abstract

The shelter is an essential need for all people and it falls under the psychological needs. Additionally, home is salient for the bonding of a family. Even though the home is a salient, but it is still being arduous to own a decent home especially for low-middle income earner. The term ‘affordable’ not necessarily only appoint to the price of the house, the location, quality and build-up of a house is equally as important as the financial affordability of a house. In 11th Malaysia Plan highlighted the issue of affordable housing location is poorly equipped with basic facilities and it is believed the excess of unsold residential units is due to less attractive locations. Apart from that, houses in Malaysia remain unaffordable to many households due to the failure in the market to produce a sufficient quantity of affordable housing for the masses. Furthermore, the increase in housing price is faster than increases in income lead to the inability for a household to own a house, especially who live in urban area. Hence, this study is sought to (i) identify the criteria needed by residents in Selangor for affordable housing distribution, (ii) analyse the housing affordability index in Selangor in the year 2012, 2014 and 2016 and (iii) analyse the issues and problems of a home buyer in Selangor according to districts. The approach of this study is the quantitative data analysis method which requires 500 samplings with the targeted population who lived in Selangor. This study adopted a questionnaire survey by face-to-face with the respondents. The formulated data was analysed used descriptive analysis whereby the data will be interpreted in the table of frequency and percentage; mean and median and Relative Importance Index (RII). Apart from that, the bivariate analysis also adopted in analyse the findings by using the Pearson Correlation to determine the relationship between socio-demographic profile and the criteria needed in the provision of affordable house. Based on findings, the respondents in Selangor stated the location of the house is the most important in constructing the affordable houses. Majority of the respondents claimed excessive housing price is the main reason for still not afford to buy a house. Due to this reason, the respondents proposed affordable house price at below RM200,000. However, the issue raised by the respondents was insufficient income. This issue will make them ineligible in applying housing program such as Rumah Selangorku which the income-eligible must at least RM3,000. Due to several issues highlighted, there are recommendations provided in this study to help the low-middle income group to own a decent house. Keywords: Housing, Criteria, Affordability, low-middle household income, Selangor