People’s Dreams and Policy Realities: Government Intervention and Affordable Housing Choices in Selangor

Lack of affordable housing is a growing concern that often becomes a primary focus for governments worldwide, including Malaysia. The main underlying causes of the affordability crisis in Selangor, Malaysia, which has been mounting for years, include oversupply, overhang, and rejected offers in the affordable housing sector. Although various affordable housing initiatives have been implemented, the persistent supply-demand mismatch raises concerns about people’s expectations and how these criteria shape government intervention to develop better policies aligned with household preferences and aspirations. Current policies aim to tackle the overhang issues. However, critics also point to a mismatch between assistance schemes and buyers’ preferences. While state-led initiatives such as subsidies, price controls, and public housing schemes aim to increase affordability, questions remain on whether these interventions truly align with household preferences and aspirations. Therefore, this study aims to uncover people’s perspectives on government interventions in shaping affordable housing policies in Selangor. Based on the findings, most buyers, industry experts, developers, and policymakers agreed that government intervention plays a vital role in shaping the affordable housing landscape. This study identified two major approaches to government intervention: innovation in housing assistance programs and comprehensive financial support. As the data were limited to Selangor, the findings are limited to this region. This study's findings will provide stakeholders with insights into the multidimensional nature of housing demand. To the best of the author’s knowledge, this is the first study to explore multiple perspectives on government interventions in the affordable housing landscape.

Affordable housing, government intervention, stakeholders

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