There is high possibility that the housing shortage in Malaysia will remain for a long time. However, while the existing housing stock is insufficient, constraints on income distributions have created affordability gaps by creating an imbalance between demand and supply. To increase housing supply, the government is providing homes directly as well as providing tax reliefs and subsidies to the developers, contractors and prospective home buyers. However, despite the measures the housing supply and distribution gaps are growing persistently. Therefore, there is the need to provide answers to a number of questions. It is the aim of this current study to examine the economic determinants of affordable housing. Through a cross sectional survey questionnaire, involving 71 homeowners, 13 cost determinants were established for affordable housing. The study provides insight into cost determinants of affordable housing. The results will be useful to policy makers, developers towards and the prospective home buyers.
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