The determinants of renting intention and renting satisfaction: the role of housing knowledge, housing challenges, and housing policy

Abstract

Purpose This study aims to investigate the impact of housing knowledge, housing challenges and housing policy on the renting intention and satisfaction of young people. Design/methodology/approach A questionnaire survey helped collect data from young people in the study area, which were then analysed using the Statistical Package for the Social Sciences (SPSS) 27 software. A descriptive analysis and the Cronbach’s alpha test were adopted to analyse the data. The confirmatory factor analysis confirmed a significant relationship between housing knowledge, housing challenges and housing policy and renting intention and satisfaction. Findings The overall findings revealed that most young people intend to own a home one day, and a minority of them decided to continue renting. The findings suggest that there is a significant relationship between housing knowledge and housing intention. However, housing challenges and housing policies do not appear to impact renting intentions. On the other hand, housing knowledge and housing challenges were found to be associated with housing satisfaction, while housing policy does not show a significant relationship. Research limitations/implications This study, however, poses limitations as it uses a limited model and location and involves only a cross-sectional study. Future studies can use the methodology used in this study to conduct further investigations on housing intention and satisfaction in other regions of the country, thereby validating the findings of this study. Practical implications In terms of practical implications, this study has made a valuable contribution to the field of housing literature by shedding light on two crucial elements, namely, housing intention and satisfaction, which have been understudied. Understanding the determinants of housing intention and satisfaction is vital in efforts to implement appropriate policy reforms. Social implications Findings from this study offer valuable insight related to managerial and practical implications, with the former implicating a need to prioritise initiatives that enhance renters’ housing knowledge. Implementing educational programmes and providing accessible resources can empower renters with a better understanding of the rental process and other important housing information. Originality/value This paper is relevant because it provides a guideline for policymakers to initiate regulations concerning housing and implement appropriate policy reforms. This study can also help housing providers develop more affordable housing that meets the needs of young people currently renting because most have expressed their housing intentions. Understanding housing intention and satisfaction determinants is vital to implementing appropriate policy reforms.