Effect factors on the affordability to own house : Malaysian case / Fatin Saadah Mohamed Khalid

Housing affordability is an important matter in the housing market to ensure that each group afford to own a house. During periods of rapid economic growth, many have the thought that house price will continue to surge and making it unaffordable especially during the financial crisis. The objective of this research is to determine the relationship between macroeconomics factors and house price index by using quarterly data from year 2006 to 2013 with 32 observations. The unit of analysis for this research comprises citizen of Malaysia. The result identified several significant variables in the prediction of factor that affecting the affordability including inflation, interest rate, income and population. The results of this study will help relevant parties to handle the situation and stabilize the housing prices before the condition become worse.