Understanding the Decline in Property Purchase Intentions among Malaysian Youth in the Context of Rising Housing Cost

HRMARS - This study examines the factors influencing the decline in property purchase intention among Malaysian youth in the context of rising housing costs. The research focuses on key determinants, including income, interest rate, housing cost, location, and government incentives and policy. A quantitative approach was employed using data collected from 220 respondents, and multiple regression analysis was conducted to evaluate the relationships between variables. The findings reveal that housing cost is the most significant factor affecting real estate decision-making, followed by income and location. The results indicate that increasing housing prices and financial constraints have reduced the ability of youth to pursue homeownership. Many respondents continue to perceive real estate as a stable and valuable investment, yet this perception does not translate into actual purchasing behaviour. A growing preference for renting is observed, reflecting affordability issues and changing lifestyle priorities. Interest rate and government incentives were found to have no significant impact on purchase intention, suggesting limitations in current policy effectiveness. The study highlights the presence of a gap between positive perception and actual behaviour due to financial and structural barriers. These findings demonstrate that economic feasibility plays a more critical role than external support mechanisms in influencing housing decisions. The study provides valuable insights into the challenges faced by Malaysian youth and contributes to a deeper understanding of declining homeownership trends.