Housing provision and satisfaction of low-income households in Kuala Lumpur

Abstract

This paper proposes a latent class path model to analyse the intention to move house as a function of residential satisfaction, which in turn is influenced by the gap between residential aspirations and reality. Different from the existing literature, which assumes the same structural dependencies apply to all residents with different socio-demographic profiles, we allow for different unobserved classes with different structural dependencies. Class membership is a function of the socio-demographics of individuals. Using data from eight renovated historical blocks in two Chinese cities, the differences influencing the intention to move house between two latent classes are captured. In one class the intention to move is significantly influenced by housing and environmental satisfaction, but this dependency is not found in the other class. The impact of the residential gap on satisfaction also differs between the two classes. Class membership is found to be mainly attributed to having property rights or not and whether respondents are supporting the elderly. Policy and planning implications are provided considering the different residential interests and backgrounds of residents.