Tiny home ownership among fresh graduates in urban area

The Tiny Home Movement (THM) was established as a countercultural movement using Tiny House, which averaged between 100 and 600 sqft. This research addresses the financial instability fresh graduates face, particularly in urban areas with high living costs; thus, high property values hinder young adults from homeownership even through loan instalments. The study aims to identify the criteria of THM that influence fresh graduates’ homeownership opportunities and examine the eligibility requirements for owning a tiny house. This research aims to achieve two objectives: Firstly, to identify the criteria of THM that influence the chances of fresh graduates to own a house. Secondly, to determine the eligibility requirements for owning a tiny house. Qualitative methods are used, including analysing secondary data and conducting semi-structured interviews with participants from cooperative and commercial banks to gain insights into the housing loan procedure. The findings reveal that the success of THM in Western countries is attributed to economic, environmental, social and structural design aspects that provide the chance to own a house. Additionally, the eligibility requirements for owning a tiny house through a bank facility emphasise the importance of credit scoring, income, wealth, and expenditure. It concludes that while tiny houses offer an economically viable option, there remains a debate over the exact definition. Fresh graduates face challenges in homeownership due to low and uncertain income, excessive obligations, insufficient downpayment, lack of work experience, and inadequate documentation for loan applications. However, government initiatives like the “Skim Rumah Pertamaku” benefit low-income earners, offering hope for fresh graduates. Overall, if THM is adopted in Malaysia, recent graduates will have a good chance of acquiring a home, especially considering the success of government housing loan initiatives.