Housing Policies, Affordability, and Homeownership Intentions among Malaysian Youth

HRMARS - This study examines the gap between housing policies and youth purchase behavior in Malaysia, with a focus on policy effectiveness, affordability constraints, and homeownership intentions. The research aims to identify the key factors influencing real estate decisions among Malaysian youth, particularly income, interest rates, housing cost, location, and government incentives and policies. A quantitative approach was employed, using survey data collected from target respondents. Descriptive analysis revealed that respondents generally perceive real estate as important, but their decisions are influenced more by financial capability than external factors. Multiple regression analysis indicated that housing cost, income, and location significantly influence homeownership intention. Housing cost emerged as the most dominant factor, highlighting the critical role of affordability in decision-making. Interest rates and government incentives were found to have no significant effect on purchase behavior. These findings suggest the existence of a policy-behavior gap, where government initiatives are perceived positively but fail to translate into actual homeownership decisions. The study also highlights the limitations of relying solely on behavioral theories without incorporating economic constraints. The research provides important insights into the mismatch between policy design and the real needs of Malaysian youth, emphasizing the importance of affordability-driven and user-centered housing strategies.