Micro-Housing Market in Selangor: Affordability, Challenges, and Public Perception

Goh, Ming Xhia (2026) Micro-Housing Market in Selangor: Affordability, Challenges, and Public Perception. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study examines the dynamics of the micro-housing market in Selangor, Malaysia, and focuses on demand drivers, financial feasibility, and public perceptions. Rapid urbanization, rising property prices, and changing lifestyle preferences among young adults have increased demand for small and cost-effective housing alternatives. This study aimed to investigate how socioeconomic, financial, and perceptual aspects impact the region's acceptance and viability of micro-housing. A quantitative research design was employed, utilizing a 130 set of structured questionnaires distributed to 100 respondents aged 18–50 through convenience and snowball sampling methods. The questionnaire, consisting of closed-ended, open-ended, checklist, and Likert-scale questions, was divided into four sections: respondent demographics, demand drivers, financial feasibility, and perceptions of benefits and challenges. Data were analyzed using descriptive statistics, reliability testing with Cronbach’s alpha, and regression analysis to identify relationships among variables. Results indicate strong interest in MH, primarily driven by lifestyle preferences, urban housing needs, and suitability for students and young professionals. While affordability supported demand, it played a secondary role. Financial feasibility analysis highlighted that targeted subsidies, such as Rumah Selangorku, and tax benefits significantly enhance the attractiveness of MH, whereas developer incentives and stamp duty exemptions showed limited influence. Perception analysis revealed that respondents value MH for its sustainability, cost-effectiveness, space efficiency, and convenience. However, concerns over limited space, privacy, high land costs, limited space for cultural practices, difficulty reselling/renting, and social stigma remain notable barriers to broader acceptance. The findings underscore MH as a viable and sustainable response to housing affordability issues in Selangor’s urbanized areas. To enhance adoption, policies should focus on improving financial support mechanisms, fostering public awareness, and integrating thoughtful design solutions that address space and privacy concerns. Collaborative efforts between government agencies, developers, and urban planners are also essential for ensuring effective implementation. This study contributes empirical evidence to the relatively underexplored context of MH in Malaysia and aligns with Sustainable Development Goal (SDG) 11, which emphasizes inclusive, safe, and sustainable cities. Examining the interplay of socioeconomic and financial factors influencing demand provides critical insights for stakeholders aiming to develop innovative, affordable housing strategies. Future research should include qualitative approaches to explore occupant experiences, regional studies beyond Selangor, and interdisciplinary investigations into the long-term impacts of MH on sustainability, community dynamics, and urban planning