A Multiple Regression Model to Define Housing Affordability Framework Case Study of Batu Pahat, Malaysia

There are many approaches in order to measure housing affordability. But the concept of affordable housing is uncertain. The capabilities of buying a house are often related to price and income. Previous studies utilized price to income ratio as basic indices, while this study is developing a framework to best describe affordability in housing through surveys and house price model. Both analyses were usually done separately, while this paper is merging both methods through house price index in order to develop a more flexible method of defining affordable housing concept based on price and income on specific location. Multiple regression analysis is used to develop a house price model, which later assists in developing the affordable housing framework. The paper establishes specific identities of house affordability for Batu Pahat city in Malaysia.