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Abstract

Homeownership is a problem among younger working households (YWH). This is a more serious problem with YWH working in urban areas. New housing schemes introduced by the government show that measures are being taken. This paper aims to determine homeownership problems among YWH in order to assess the new housing schemes towards helping YWH. The questions arise are what are the homeownership problems among YWH and to what extent does YWH perceive the new housing schemes to help them. The objectives are to ascertain homeownership problems among YWH and to explore the perceptions of YWH on the new housing schemes introduced. The study was conducted qualitatively through in-depth interviews with YWH. The findings showed that the main homeownership problem highlighted by the YWH is housing prices are high in urban area which resulted to the location of affordable houses inconvenient. From the assessment, majority of the YWH agree with the new housing schemes. However there are weaknesses such as high land prices and absence of financial literacy. In conclusion, housing schemes should also consider financial education as part of their aims. Nevertheless, the introduction of housing schemes is beneficial to address homeownership problems among YWH.

Keywords: Young Household, Homeownership problems, Housing schemes, Affordable housing, Housing affordability

1 . Introduction

Owning a house Is every household dream. With increasing house prices especially in urban areas, younger working households (YWH) find it difficult to enter homeownership. With qualifications and employment, YWH today are a subset of middle income group and are facing difficulties in purchasing their first house (Wan et ol. 2010).

In Malaysia, the state holds a responsibility in providing houses for low income households while other income households depend on the private sector for housing (Tan 2012). Tan (2012) also added the private sector has concentrated on high end homes because of the substantial increase in house and land prices. Because of this, there is shortage in supply of affordable houses in urban areas (NAPIC 2012). Even so, the houses that are affordable are located far from the city centre and incur additional transportation cost.

Moreover, the trend of migration rate from rural to urban areas has increased from 11% in 1957 to 72% in 2010 (PR1 MA 2012). Due to this,...

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