LOCATION HOUSING AFFORDABILITY INDEX: ANALYSING THE RELATIONSHIPS
DOI:
https://doi.org/10.21837/pm.v19i15.923Keywords:
Location Housing Affordability Index, Housing Price, Housing Expenditure, Transportation ExpenditureAbstract
Previous studies claimed that Malaysia is inclined towards a severely unaffordable housing price. Despite such crucial studies, the topics do not provide sufficient empirical evidence to establish a relationship between housing prices, housing and transportation expenditure in Malaysia. Therefore, this study examines the role of these variables in determining the Location Housing Affordability Index. The research had therefore identified measurement items that contribute to Location Housing Affordability Index. The primary data was obtained from urban areas in the Klang Valley using questionnaires, where a total of 363 respondents were selected using the Simple Random Sampling technique. The Partial Least Squares (PLS) method was adopted in analysing the collected data to determine the relationship. The outcome demonstrated the relationship between housing price, housing and transportation expenditure, indicating the significance of the Location Housing Affordability Index and can be a reference for housing policymakers.Downloads
References
Center for Transit-Oriented Development and Center for Neighborhood Technology. (2006). The Affordability Index: A New Tool for Measuring the True Affordability of a Housing Choice. Urban Market Initiative.
DiPasquale, D. and Wheaton, W. C. (1996). Urban Economics and Real Estate Markets (Vol. 23). Prentice-Hall Englewood Cliffs, NJ.
Field, A. (2013). Discovering Statistics Using IBM SPSS Statistics. Sage Publication.
Fornell, C. and Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research.
Gabriel, M., Jacob, K., Arthurson, K., Burke, & T., Yates, J., (2005). Conceptualising and Measuring the Housing Affordability Problem. Australia Housing and Urban Research Institute
Giuliano, G. (1998). Urban Travel Patterns. John Wiley & Sons Ltd. Greenlee, A.J. & Wilson, B.K. (2016): Where Does Location Affordability Drive Residential Mobility? An Analysis of Origin and Destination Communities. Housing Policy Debate, DOI: 10.1080/10511482.2016.1163611
Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced Issues in Partial Least Squares Structural Equation Modelling. SAGE Publications.
Han, H., Jung, Y. M., & Xiong, X. (2019). Housing and Location Choice. In The Ageing of Australian Ethnic Minorities, (pp. 49-60). Palgrave Pivot, Singapore.
Hartell, A. M. (2017). Evaluating the Concept of Location Affordability: Recent Data on the Relationship between Transportation, Housing, and Urban Form. Housing Policy Debate, 27(3), 356–371.
Hassan, M. A., Hamdan, H., Abdullah, J., & Abdullah, Y. A. (2018). Housing and Transportation Expenditure: An Assessment of Location Housing Affordability. Journal of the Malaysia Institute of Planners, 16(2), 99–108.
Hassan, M. A., Hamdan, H., Abdullah, J., & Abdullah, Y. A. (2017a). Locat?on Hous?ng Affordab?l?ty as an Indicator for Qual?ty of Life in Malays?a. Environment Behaviour Proceedings Journal, 2(6), 247-253.
Hassan, M. A., Hamdan, H., & Abdullah, J. (2017b). A Conceptual Overview of Sociospatial Pattern for Housing Affordability of Urban Area in Malaysia. Journal of Applied Environment and Biological Science, 7(5S), 41–44.
Hulchanski, D. J. (1995). The Concept of Housing Affordability: Six Contemporary Uses of the Housing Expenditure to Income Ratio. Housing Studies, 10(4), 21.
Isalou, A. A., Litman, T., & Shahmoradi, B. (2014). Testing the Housing and Transportation Affordability Index in a Developing World Context: A Sustainability Comparison of Central and Suburban Districts in Qom, Iran. Transport Policy, 33, 33–39. https://doi.org/10.1016/j.tranpol.2014.02.006
Ismail, A., Bujang, A. A., Jaafar, M. N., Jiram, W. A., & Wijayaningtyas, M. (2020). Housing Affrodability Stress: A Literature Survey and Some Evidence from Malaysia. Jurnal Kemanusiaan, 18(1).
Krejcie, R. V, & Morgan, D. W. (1970). Determining Sample Size for Research Activities Robert. Educational and Psychological Measurement, 38(1), 607–610. https://doi.org/10.1177/001316447003000308
Litman, T. (2014). Transportation Affordability. Victoria Transport Policy Institute.
Litman T. (2011). Affordable – Accessible Housing Inn Dynamic City.Why and How to increase Affordable Housing Development in Accessible Location; Victoria T. P Policy Institutes,
Mattingly, K., & Morrissey, J. (2014). Housing and Transport Expenditure: Socio-spatial Indicators of Affordability in Auckland. Cities, 38, 69–83.
Ramayah, T. (2014) SmartPLS 2.0, School of Management, Universiti Sains Malaysia, Penang.
Majid, R. A., Said, R. & Chong, J., T., S. (2017). Assessment of Bubbles in the Malaysian Housing Market. Journal of the Malaysia Institute of Planners, 16(2), 99–108.
Osman, M. M., Rabe, N. S., Abdullah, M. F., Rosli, N. F., & Zainudin, F. E. (2017). Housing affordability in the state of Melaka. Planning Malaysia, 15(1). 225-260.
Saberi, M., Wu, H., Amoh-gyimah, R., & Smith, J. (2017). Measuring Housing and Transportation Affordability: A case study of. Journal of Transport Geography, 65(May), 134–146. https://doi.org/10.1016/j.jtrangeo.2017.10.007
Sabri, S., Ludin, A.N.M & Johar, F. (2013). Assessment of Neighbourhood Affordability Based on Housing and Transportation Cost in Kuala Lumpur, Malaysia. Journal
of the Malaysia Institute of Planners, II(1), 75-100.
Saleh, A. F. A., Hwa, T. K., & Majid, R. (2016). Housing Mismatch Model in Suburban Areas. Procedia - Social and Behavioural Sciences, 234, 442–451. https://doi.org/10.1016/j.sbspro.2016.10.262
Sohaimi, N. S., Abdullah, A., Shuid, S., & Sarkawi, A. A. (2017). Young Professional Housing Affordability Through Housing Preferences in Kuala Lumpur and a Review on the Means-end Chain Model. Journal of the Malaysia Institute of Planners, 15(1), 369-376.
Vidyattama, Y., Tanton, R., & Nepal, B. (2013). The Effect of Transport Costs on Housing - Related Financial Stress in Australia. Urban Studies, 50 (July), 1779–1795. https://doi.org/10.1177/0042098012468342
Yip, C.Y., Au, Y. H. & Senadik, A. (2019) The Nexus between Housing Glut, Economic Growth, Housing Affordability and Housing Price in Malaysia. Journal of the Malaysia Institute of Planners, 17(1), 267-279.
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.