Housing Affordability of Middle Income Households in Kuala Lumpur

  • Intan Melati Che Hassan Faculty of Design and Architecture, Universiti Putra Malaysia (UPM)
  • Faziawati Abdul Aziz Faculty of Design and Architecture, Universiti Putra Malaysia (UPM)
  • Nor Azlina Abu Bakar Faculty of Design and Architecture, Universiti Putra Malaysia (UPM)
  • Noordin Ahmad Faculty of Engineering, Universiti Putra Malaysia (UPM)
Keywords: middle income, housing affordability, housing price


The housing price in Kuala Lumpur is more expensive than other areas in Malaysia. The mismatch between demand and supply is not due to lack of supply, but the constraint is on the supply of housing that can be accessed especially by the middle income households. Apart from housing price and household income, housing type is also a crucial factor that directly influences housing affordability in Kuala Lumpur. Terraced and high-rise houses are favoured and within affordable means of the middle income groups. Analysis of the housing price index for these two types in Kuala Lumpur plotted against Malaysia Housing Price Index (MHPI) from 2000 to 2016 portrayed that both exceeded the rate of MHPI with a higher value and sharper gradient in the terraced house index, signifying rapid increment in their values. Detail analysis was also carried out on these two types using Price to Income ratio method to calculate housing affordability. Kuala Lumpur seems to fall into the seriously to severely unaffordable household category at Price-Income ratios of 4.27 to 6.76 for terraced and high- rise, respectively.


Download data is not yet available.


 Aziz, A. (2017) Focus on affordable housing may hurt private developers. The Edge Financial Daily. November 10, 2017. http://www.theedgemarkets.com/article/focus-affordable-housing-may-hurt-private-developers

Baqutayan, S.M.S. (2016). Is affordable housing an Issue? A case study of housing stress among middle-income group in Malaysia. International and Multidisciplinary Journal of Social Sciences, 5(1), 26-50. doi: 10.17583/rimcis.2016.1871

BNM (2015) Assessing Demand-Supply Conditions in the Malaysian Property Market. Annual Report Bank Negara Malaysia 2015, 33-43.  https://www.bnm.gov.my/files/publication/ar/en/2015/cp01_002_box.pdf

Bujang, A.A., Jiram, W.R.A., Abu Zarin, H. and Md Anuar, F.H. (2015) Measuring the Gen Y housing affordability problem. International Journal of Trade, Economics and Finance, 6(1), 22-26

Chiali, K. C., & Choon, A., (2014). People’s perception of affordable housing. Retrieved from: http://www.starproperty.my/index.php/articles/property-news/peoples-perception-of-affordable-housing/

Chong, P.K. (2017) Here's Why Malaysians Can't Afford a House. https://www.bloomberg.com/news/articles/2018-02-11/traders-brace-for-more-turmoil-after-recent-rout-markets-wrap

DOSM (2017) Employment and Salaries & Wages Statistics 2016. Department of Statistics Malaysia. www.dosm.gov.my

DOSM (2017a) Report on household expenditure survey 2016. Department of Statistics Malaysia, October 2017. www.dosm.gov.my

EPU (2015), Strategic Paper 6: Providing Adequate and Quality Affordable House Economic Planning Unit, Prime Minister’s Department, Putrajaya, Malaysia.

EPU (2016). Eleventh Malaysia Plan. Economic Planning UnitJobstreet, 2017; KRI, 2015;

Gabriel, M., Jacobs,K.,  Arthurson, K., Burke, T. and Yates, J. (2005) Conceptualising and measuring the housing affordability problem. Australian Housing and Urban Research Institute (AHURI).  ISBN: 1902941762

Joice, P. (2014) Measuring Housing Affordability. Cityscape Vol. 16, No. 1, Housing, Contexts, and the Well-Being of Children and Youth (2014), pp. 299-308

KRI (2015) Making housing affordable, Khazanah Research Institute. ISBN 978-967-12929-2-1. http://www.krinstitute.org/assets/contentMS/img/template/editor/_FINAL_Full_Draft__KRI_-_Making_Housing_Affordable__with_hyperlink__220815%20(1).pdf

Ling, C.S. and Almeida, S.J (2017) Demystifying the Affordable Housing Issue in Malaysia in Central Bank of Malaysia Annual Report 2016, pp90-99.

Md Sani, N. (2015) Price to Income Ratio Approach in Housing Affordability. Journal of Economics, Business and Management, 3(12), 1190-1193

Md Sani, N. and Rahim, A. (2012) Affordable housing in Kuala Lumpur, Malaysia. International Journal of Academic Research, 4(3), 75-82

Md Yusof, A., Saar, C.C and Johan, J. (2014). An analysis of housing affordability among potential house buyers in the city of Kuala Lumpur. Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate, 547-555.

Meen, G. (2018) How should housing affordability be measured? The UK Collaborative Centre for Housing Evidence. http://housingevidence.ac.uk/wp-content/uploads/2018/09/R2018_02_01_How_to_measure_affordability.pdf

Mohd Lizam, Afiqah, N., Omar, A.J. and Burhan, B. (2014) Comparison of empirical models in Malaysia House Price Index Construction. 20 th Annual Pacific RIM Real Estate Society Conference, Christchurch, New Zealand, 19-22 January 2014.

Payscale (2018) https://www.payscale.com/research/MY

Rameli, N., Salleh,D. and Ismail, M. (2016) Homeownership Affordability: An Analysis of Socioeconomic Factors. Research on Humanities and Social Sciences, 6 (6), 56-59

Ramlan, H. and Zahari,E.E. (2016) Review the Issue Of Housing among Urban Dwellers in Malaysia with Special Reference towards Affordability to Home Ownership. Procedia Economics and Finance, 35 (2016), 216 – 223

Rangel, G.R., Ng, J.W.J, Murugasu, M.T and Poon, W.C. (2017) A Micro-level View of Housing Affordability in Malaysia Using an Age Cohort-housing Type Analysis. doi:10.2139/ssrn.3080212

Suhaida, M.S., Tawil, N.M., Hamzah, N., Che-Ani, A.I. Basri, H. and Yuzainee, M.Y. (2011) Housing Affordability: A Conceptual Overview for House Price Index. The 2nd International Building Control Conference 2011. Procedia Engineering 20 (2011) 346 – 353. Elsevier

Tan, Y.K. (2011) An Hedonic Model for House Prices in Malaysia. International Real Estate Society Conference, 15(1),12-15.

Wan Aziz, W.N.A., Hanif, N.R. and Singaravello, K. (2010) A study on affordable housing within the middle income households in the major cities and towns in Malaysia. Retrieved March 30, 2015 from:http://www.inspen.gov.my/inspen/v2/wp-content/uploads/2009/08/Affordable-housing.pdf

Zainon, N., Mohd-Rahim, F.A., Sulaiman, S., Abd-Karim, S.B. and Hamzah, A. (2017) Factors Affecting the Demand of Affordable Housing among the Middle-Income Groups in Klang Valley Malaysia. Journal of Design and Built Environment, Special Issue 2017, 1-10.

Zairul, M.N. (2017) flexZhouse: New business model for affordable housing in Malaysia. PhD thesis Delft University of Technology. ISBN 978-94-92516-398

Zyed, Z.S., Aziz, W.N.A. and Hanif, N.R. (2016) Housing affordability problems among youth households. Journal of Surveying, Construction and Property, 7(1), 1-18
How to Cite
Che Hassan, I. M., Abdul Aziz, F., Abu Bakar, N. A. and Ahmad, N. (2019) “Housing Affordability of Middle Income Households in Kuala Lumpur”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 4(3), pp. 185 - 191. doi: 10.47405/mjssh.v4i3.223.