Abstract:

Increasing housing prices in Perak have made it difficult for homebuyers to own affordable housing. Housing affordability ensures that housing provided is affordable for every income groups, especially the low and the middle income group. It has brought the government and housing developers to take close the issue of housing affordability by supplying public low cost housing schemes. Nevertheless, many of the housing projects arising from these schemes have turned into slums that do not provide a wholesome environment for families. This paper aims to determine factors affecting housing affordability by including calculation of transportation expenditure. A total of 65 questionnaires were distributed to the homebuyers in Perak Tengah. Multiple linear regression was conducted and the results revealed that locational, neighbourhood, structural and financial were significant factors influence housing affordability. It also showed that including transportation expenditure into the calculation of housing affordability can reveal different housing affordability measurement.