Examining surplus and shortage in occupied housing preference in Malaysia

AbdulLateef Olanrewaju, Kai Sin Chai, Shalini Sanmargaraja, Zafarullah Nizamani and Soo Cheen Khor

International Journal of Housing Markets and Analysis, 2024, vol. 19, issue 1, 285-308

Abstract: PurposeHousing sufficiency is a critical indicator of national development and growth. However, in most countries, housing affordability remains a significant challenge, leading to a mismatch between housing supply and demand. The purpose of this study is to investigate the housing preferences, current occupation and the resulting surplus and shortage across various housing types.Design/methodology/approachData were collected through a survey, and the analysis focused on quantifying the mismatch between preferred and occupied housing types.FindingsResults revealed significant disparities between housing preferences and current occupation, with some housing types experiencing surplus and others facing shortages. The findings uncovered a 23% discrepancy in housing demand and supply. The sensitivity results indicate that 30% of the respondents currently living in a particular type of housing unit would choose to live there if given the option. The specificity results show that 90% of respondents not living in a particular type of housing unit would continue to avoid choosing it. Housing price, income, ethnicity, race and location are the major drivers of the housing preferences.Practical implicationsDevelopers can align their projects with consumer preferences to minimize surplus and shortages. Financial institutions may consider these insights when tailoring mortgage products to meet the diverse needs of potential homebuyers. This research provides a valuable foundation for strategic planning and policy formulation aimed at enhancing housing sufficiency and socioeconomic development in Malaysia.Originality/valueThis study lays the foundation for future research and for incentive mechanisms for homebuyers and developers. The results are useful to policymakers, developers, banks, consultants, housing associations and academics.

Keywords: Abandoned housing; Property overhang; Satisfactions; Affordability; Market analysis; Housing choice (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijhmap:ijhma-08-2024-0126

DOI: 10.1108/IJHMA-08-2024-0126

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