A Study on Housing Affordability in Transit-Oriented Developments (TOD) in Kuala Lumpur: Barriers and Policy Strategies for Low- and Middle-Income Households

Tan, Jia Hooi (2026) A Study on Housing Affordability in Transit-Oriented Developments (TOD) in Kuala Lumpur: Barriers and Policy Strategies for Low- and Middle-Income Households. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study investigates the barriers to housing affordability in Kuala Lumpur’s Transit-Oriented Developments (TODs), with a focus on low- and middle-income households. Using a quantitative cross-sectional survey of 100 respondents, the research applies descriptive statistics, Chi-square tests, multiple regression, and the Relative Importance Index (RII) to analyze affordability challenges, the impact of TOD proximity on housing costs, and policy strategies. The findings reveal that the most critical barriers are rising rental costs, high monthly loan repayments, and down payment requirements. Regression analysis indicates that housing costs increase by 5.2% for every 100 metres closer to TOD stations, highlighting displacement risks, particularly for B40 households. Policy analysis demonstrates strong support for affordable housing quotas, first-time buyer subsidies, and developer tax incentives, while rent-to-own schemes received lower support. The study contributes theoretically by applying the Price-to-Income Ratio (PIR) and RII within the framework of urban economic theory to contextualize affordability in TODs. In practice, it provides developers and policymakers with evidence-based recommendations for designing inclusive TOD projects. Limitations include reliance on cross-sectional data and the exclusion of commercial property dimensions, suggesting future longitudinal and comparative studies. Overall, the results emphasize that stronger affordability policies are essential to ensure equitable access to TOD housing