Impediments to Home Ownership: Perception of Lowand Middle-Income Tenants in Selangor

Abstract

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.