Which Factors Contribute to the Homeownership Decision? A Preliminary Study of Malaysia’s Young Adult

Abstract

Young adults refer to those between 25 and 40 years of age who had established themselves in the society. The increasing house price and interest rates has put homeownership among young adults are at risk. Most of young adults in Malaysia are opted to renting rather than owning the house. This research aims to assess the challenges faced by young adults in owning a house in Klang Valley. Klang Valley is chosen as study area because it is the center for development and economic of Malaysia, thus has been the focus of government policy and developer activities pertaining to housing. The survey was conducted with 385 respondents who stays and work in Klang Valley, by using simple random sampling. The data were collected and analyzed to have a better understanding on the challenges facing by young adults in owning a house in Klang Valley area. The study discovers that the most significant main factor influencing homeownership decision was location factors (M= 3.79), followed by Behavioral Factors (M=3.46) and lastly, Financial & Economic Factors (M=3.22).