URBAN HOUSING AFFORDABILITY: ANALYZING THE IMPACT OF AFFORDABLE HOUSING SCHEMES ON HOUSING PRICES
DOI:
https://doi.org/10.21837/pm.v23i39.1897Keywords:
Housing prices, affordable housing scheme, location preferences, financial approval, demand factorsAbstract
Housing affordability remains a critical issue in urban areas, where rising demand and limited supply drive property prices upward. Governments have introduced affordable housing schemes to address these challenges, but their effectiveness hinges on alignment with local market conditions and demand-side factors such as financial capability, government regulation on affordable housing, and location preferences. Despite their importance, few studies have examined the specific attributes of affordable housing schemes and their impact on housing prices. This study bridges this gap by investigating the relationship between affordable housing prices and housing demand, employing a mixed-methods approach and using correlation and regression analysis, an initial framework of 15 attributes was evaluated, categorized under financial approvals, government regulations, and location preferences. The results reveal that nine attributes significantly influence housing prices within affordable housing schemes. Key factors include credit history, down payment, loan margin, approval location, qualification requirements, and procedural complexities, all of which exhibit strong correlations with housing prices. These findings underscore the need for policymakers to refine regulatory mechanisms to better align with the financial capabilities of homebuyers. By addressing these factors, housing policies can be tailored to enhance affordability and promote sustainable housing development.
Downloads
References
Adzhar, S. A., Rahim, N. A., Basrah, N., Majid, R. A., & Mustafar, S. (2021). Overview on built environment planning: Residential overhang factors in Malaysia affordable housing. IOP Conference Series: Earth and Environmental Science, 881.
Al Shawabkeh, R. K., Alzouby, A. M., Rjoub, A., Alsmadi, M., AlKhamaiseh, M., Shboul, D., Smadi, A., Al-Bzour, A., Al-Omari, R., & Alobaidat, E. (2020). Evaluating the satisfaction rate for affordable housing in non-gated residential area (NGR): The case of Al-Sharq housing project in Zarqa-Jordan. International Journal of Housing Markets and Analysis, 14(1), 192–217.
Batog, B., & Foryś, I. (2013). The analysis of the spatial stability of prices on the secondary housing market. Folia Oeconomica, 292, 77–88.
Batóg, J., Foryś, I., Gaca, R., Głuszak, R. M., & Konowalczuk, J. (2019). Investigating the impact of airport noise and land use restrictions on house prices: Evidence from selected regional airports in Poland. Sustainability, 11(2), 412.
Berawi, M. A., Darmawan, A., Gunawan, Miraj, P., & Rahman, H. D. (2020). Land value capture: Defining crucial variables difference-in-differences model for residential properties surrounding MRT Jakarta stage.
Cambridge University Press. (2019). Cambridge dictionary. https://dictionary.cambridge.org
Cheshire, P., & Sheppard, S. (2004). Endogenous changes in urban structure: Evidence from private housing supply. Journal of Urban Economics, 55(1), 130–154.
Cheshire, P., & Sheppard, S. (2004). Introduction to the special issue: Urban problems and policies. Journal of Economic Geography, 4(1), 1–6.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences. Routledge.
Crespo, R., & Grêt-Regamey, A. (2013). Local hedonic house-price modelling for urban planners: Advantages of using local regression techniques. Environment and Planning B: Planning and Design, 40(4), 664–682.
Dai, J., Lv, P., Ma, Z., Bi, J., & Wen, T. (2020). Environmental risk and housing price: An empirical study of Nanjing, China. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2019.119828
Darendra, N. S., & Riyanto, E. (2025). Hedonic pricing model (HPM) on South Tangerang residential property value. Planning Malaysia, 23(1), 319–333.
Dewan Bandaraya Kuala Lumpur. (n.d.). Official total population in selected areas for Klang Valley. Retrieved January 2023.
Esmaeil Hadavandi, Arash Ghanbari, S. Mohsen Mirjani, & Salman Abbasian. (2011). Econometric panel data-based approach for housing price forecasting in Iran. International Journal of Housing Markets and Analysis, 4(1), 70–83.
Glaeser, E. L., & Gyourko, J. (2003). The impact of building restrictions on housing affordability. Economic Policy Review, 9(2), 21–39.
Glaeser, E. L., & Gyourko, J. (2018). The impact of building restrictions on housing affordability. FRB of Philadelphia Working Paper, 18-23.
Green, R. K., Malpezzi, S., & Mayo, S. K. (2018). Metropolitan-specific estimates of the price elasticity of supply of housing, and their sources. American Economic Review, 95(2), 334–339.
Gyourko, J., & Molloy, R. (2015). Regulation and housing supply. In Handbook of regional and urban economics (Vol. 5, pp. 1289–1337). Elsevier.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed, a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.
Hilber, C. A. L., & Vermeulen, W. (2016). The impact of supply constraints on house prices in cross-country analysis. Journal of Housing Economics, 32, 83–101.
Julien, J. P., Stewart, S., III, Quirós, J. M., Cook, K., Muller, K., Noel, N., & Autor, S. (2025). Investing in housing: Unlocking economic mobility for Black families and all Americans. McKinsey Institute for Economic Mobility.
Kauko, T. (2003). Residential property value and locational externalities. Journal of Property Investment & Finance.
Krysik, J. L., & Finn, J. (2013). Research for effective social work practice (3rd ed.). Routledge.
Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132–157. https://doi.org/10.1086/259131
Lee, A. K. L., Sinnakkannu, J., & Ramasamy, S. R. (2021). Housing bubble, affordability and credit risk to banks: A Malaysian perspective. Journal of the Asia Pacific Economy, 26(4), 619–652.
Majid, R. A., Said, R., Rahim, N. A., Saleh, A. F., & Suryanto, T. (2023). Modelling housing demand factors for affordable units in Malaysia. International Journal of Sustainable Construction Engineering and Technology, 14(5), 267–277.
Malpezzi, S. (1996). Housing prices, externalities, and regulation in U.S. metropolitan areas. Journal of Housing Research, 7(2), 209–241.
Malpezzi, S., & Vandell, K. (2002). Does the low-income housing tax credit increase the supply of housing? Journal of Housing Economics, 11(4), 360–380.
Mukhtar, S. N., Jamaludin, A. F., Abd Razak, M. H., Arminda, W., & Saleh, A. F. (2025). Investigating factors influencing residential location choice using PLS-SEM analysis: A case study in Seberang Perai, Penang, Malaysia. Planning Malaysia, 23(36).
Pallant, J. (2005). SPSS survival guide. Open University Press.
Quigley, J. M., & Raphael, S. (2004). Is housing unaffordable? Why isn't it more affordable? Journal of Economic Perspectives, 18(1), 191–214.
Riyanto, E., et al. (2021). Identify factors influencing residential property value based on government appraisal perceptions. Info Artha, 5(1), 55–65.
Riyanto, E., Prasetyo, K. A., & Wahyudi, E. (2023). Data-type adjustment for residential property valuation in Jakarta: An exploratory study. Planning Malaysia. https://doi.org/10.21837/pm.v21i27.1281
Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, 82(1), 34–55.
Saleh, A. F., A. M., Aini, R., Majid, M. H., Mustafa, & Jamaludin, A. F. (2022). Modelling housing mismatch for affordable housing demand and supply in Malaysia. Journal of the Malaysian Institute of Planners, 22(3), 335–351.
Saleh, A. F., Majid, R., Ab. N., Rahim, & Omar, M. D. (2022). Housing supply model for affordable homes in Malaysia. Environment–Behaviour Proceedings Journal, 2(5).
Saleh, A. F., Ting, K. H., Majid, R., & Masri, H. (2017). Attributes of housing mismatch framework in urban areas. Environment–Behaviour Proceedings Journal, 2(5).
Saleh, F., Ting, K. H., & Majid, R. (2016). Housing mismatch model in suburban areas. Procedia - Social and Behavioral Sciences, 234, 442–451.
Urban Institute. (2025). The cost of affordable housing: Does it pencil out? Urban Institute.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 Unported License.
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysian 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.
