The Relationship Between Housing Type, Housing Prices, and Strategic Location on Housing Affordability in Malaysia

Abstract

The issue of housing affordability in Malaysia, particularly in Johor, has become increasingly critical due to rising housing prices and the imbalance between household income and market prices. This study assesses the factors of housing type, housing price (housing market and construction costs), and strategic location (neighbourhood and public amenities) on housing affordability. This study aims to identify the levels of housing type, housing price, and strategic location in relation to housing affordability and to analyse the relationship between these variables. The study employs a quantitative descriptive design using a questionnaire as the data collection instrument. A total of 385 respondents in Bandar Sri Alam, Pasir Gudang, were selected through simple random sampling. Data were analysed using descriptive statistics, Pearson correlation, and ANOVA. The levels of housing type, housing price, and strategic location were found to be high. A significant relationship was identified between housing type, housing price (housing market), and public amenities with housing affordability (p < 0.01). However, construction costs and neighbourhood factors did not show a significant relationship. Market price and public amenities play a crucial role in housing affordability, whereas construction costs and neighbourhood factors require further study. These findings suggest the need for housing strategies that focus on accessibility and economic stability to enhance housing affordability in Malaysia.