IMPEDIMENTS TO HOME OWNERSHIP: PERCEPTION OF LOW AND MIDDLE-INCOME TENANTS IN SELANGOR
DOI:
https://doi.org/10.21837/pm.v16i7.524Keywords:
housing, low and middle income household, affordability, access to housingAbstract
Home ownership affordability has been a serious issue among the low and middle income households in Malaysia. Main contributors to this issue are low income, high cost of living and growth in income that does not commensurate the rise in property price. This research intends to identify the level of home ownership affordability among those who are unable to have a house and are tenants. In addition, it intends to examine the factors that affect their home ownership affordability. The study focuses on people residing at rented units in Kajang, an urban city in Selangor, where primary data was collected using questionnaire method. The target group was low and middle income households, whose head of household aged between 21 to 50 years and total household income capped below RM7,500. The success rate was 74 percent based on 250 households met. The research findings indicate that the level of home ownership affordability varies by ethnicity, household income and educational level. Meanwhile, four main factors that influence home ownership affordability are price of house, affordable mortgage loan, proximity to workplace and government policy on affordable housing. Majority of the respondents are still pessimistic of their ability to own a residential unit.Downloads
References
Ariffin, R. N. R., Zahari, R. K., & Nadarajah, S. (2010, July). Residential satisfaction in private low-cost housing in the urban area: a case study of the Klang Valley, Malaysia. 22nd International Housing Research Conference. July 4-7, 2010, Istanbul, Turkey.
Ar??glu, N. (2002). The usage trends of materials in high-rise buildings. In O. Ural, V. Abrantes, & A. Tadeu (Eds.), Housing construction: An interdisciplinary task (pp.1655-1660). Portugal: University of Coimbra.
Beer, A., Kearins, B., & Pieters, H. (2007). Housing affordability and planning in Australia: The challenge of policy under neoliberalism, Housing Studies, 22(1), 11-24.
Berry, M. (2006). Housing affordability and the economy: A review of macroeconomic impacts and policy issues. Research Paper 4. Australian Housing and Urban Research Institute: RMIT-NATSEM Research Institute.
Berry, M., & Dalton, T. (2004). Housing prices and policy dilemmas: A peculiarly Australian problem? Urban Policy and Research, 22(1), 69-91.
Burke, T., Pinnegar, S., Phibbs, P., Neske, C., Gabriel, M., Ralston, L., Ruming, K. (2008) Experiencing the housing affordability problem: blocked aspirations, trade-offs and financial hardships, AHURI Research Paper No. NRV3-9. Australian Housing and Urban Research Institute Limited, Melbourne.
Cox, A., & Followill (2018). To rent of buy? A 30-year perspective. Journal of Financial Planning, 31(5), 48-55.
Duan, M. (2011). Investigation on housing affordability in Lanzhou, Northwest China. International Journal of Housing Markets and Analysis, 4(2), 180-190.
Field, A. (2005). Discovering SPSS for windows: Advanced techniques for the beginner. London: Sage Publications.
Forrest, R., & Hirayama, Y. (2009). The uneven impact of neoliberalism on housing opportunities. International Journal of Urban and Regional Research, 33(4), 998-1013.
Hair, J. R., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective. Singapore: Pearson.
K’Akumu, O. A. (2007). Strategizing the decennial census of housing for poverty reduction in Kenya. International Journal of Urban and Regional Research, 31(3), 657-674.
Kahn, J. (2007). World trade, world bank, privatization: Neoliberalism the economics favored by big business, banks, and our government. Retrieved from http://www.skeptically.org/wto/id10.html.
Khalid, M. S. (2010). Abandoned housing development: The Malaysian experience (Doctoral dissertation). Heriot-Watt University, Edinburgh, Sctland.
Lau, K. M., & Li, S. M. (2006). Commercial housing affordability in Beijing, 1992-2002. Habitat International, 30(2006), 614-627.
Malaysia, Department of Statistics (2011). Population distribution by local authority areas and mukims 2010. Putrajaya: Author.
Md. Sani, N. (2007). Kemampuan pemilikan rumah kos rendah di Kuala Lumpur (Doctoral dissertation). Universiti Sains Malaysia, Penang, Malaysia.
Pros and cons in rent-to-own schemes (2018, July 28). The Star Bizproperty. Retrieved from https://www.thestar.com.my/business/business-news/2018/07/28/pros-andcons-in-renttoown-schemes/
Salhotra, R. (2018). Inadequate affordable housing in Houston: Causes, effects, and solutions. Kansas Journal of Law & Public Policy, 27(2), 186-210.
Shaffer, B. (2015). Affordable housing in the Big City: A look at causes and current policies in San Francisco, Boston, and New York. Harvard Kennedy School Review, 15, 40-46.
Sliogeris, E., Crabtree, L., Phibbs, P., Johnston, K., & O'Neill, P. (2008). Housing affordability literature review and affordable housing program audit. Penrith, N.S.W: University of Western Sydney.
Torluccio, G., & Dorakh, A. (2011). Housing affordability and methodological principles: An application. International Research Journal of Finance and Economics, 79, 64-78.
Trimbath, S., & Montoya, J. (2002). Housing affordability in three dimensions: Price, income and interest rates. California: Milken Institute.
Valuation and Property Services Department. (2017). Malaysian house price index. Retrieved August 2, 2018 from http://napic.jpph.gov.my/portal.
Wan Abd Aziz, W. N. A., Kuppusamy, S., Doling, J., & Hanif, N. R. (2014). Towards a housing policy in Malaysia. In J. Doling, & R. Ronald (Eds.), Housing East Asia: Socioeconomic and demographic challenges. London: Palgrave Macmillan.
Wan Abd Aziz, W. N. A., Hanif, N. R., & Kuppusamy, S. (2010). Housing affordability issues for middle income households: The Malaysian perspective. Paper presented at the 22nd International Housing Research Conference, ENHR 2010, 4-7 July, Istanbul.
Wang, Y. P., Shao, L., Murie, A., & Cheng, J. (2012). The maturation of the neo-liberal housing market in urban China. Housing Studies, 27(3), 343-359.
Yates, J., & Milligan, V. (2007). Housing affordability: A 21st century problem, Final report. Australian Housing and Urban Research Institute (AHURI), Sydney Research Centre.
Downloads
Published
How to Cite
Issue
Section
License
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.
The authors hold the copyright without restrictions and also retain publishing rights without restrictions.
