Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?

This paper examines the factors influencing the expenditure pattern of middle-income households on housing in selected state capital cities in Malaysia by focusing on mortgage and rental expenses. Three state capital cities were chosen (George Town in Pulau Pinang, Kuala Lumpur and Johor Bahru in Jo...

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Main Authors:	Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:	http://journalarticle.ukm.my/14118/ http://journalarticle.ukm.my/14118/ http://journalarticle.ukm.my/14118/1/jeko_53%282%29-5.pdf

id	ukm-14118
recordtype	eprints
spelling	ukm-141182020-02-06T13:36:51Z http://journalarticle.ukm.my/14118/ Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go? Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail, This paper examines the factors influencing the expenditure pattern of middle-income households on housing in selected state capital cities in Malaysia by focusing on mortgage and rental expenses. Three state capital cities were chosen (George Town in Pulau Pinang, Kuala Lumpur and Johor Bahru in Johor) and a survey was carried out with 473 observations that were used for estimations by using a censored Tobit model. The results indicate that household income is statistically significant and does indeed affect mortgages but not the rental expenses in the selected state capital cities. Moreover, there is strong evidence of a relationship between family size and the number of rooms with the mortgage and rental expenditure. The analysis also indicates that there is a different pattern of expenditure on mortgage and rental between the different ethnic groups in Malaysia. The Chinese and Indian races tend to spend more on mortgages and less on rental compared to the Malays. Further, the gender and age of household heads are found to be insignificant in terms of influencing mortgages but do affect rental expenditure. In addition, middle-income households in Johor Bahru pay more on mortgages and in Kuala Lumpur such households pay more for housing rental. It is concluded that changes in spending patterns are starkly different across state capital cities in Malaysia and mortgage repayments represent a large proportion of household expenditure. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14118/1/jeko_53%282%29-5.pdf Rusli Latimaha, and Zakaria Bahari, and Nor Asmat Ismail, (2019) Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go? Jurnal Ekonomi Malaysia, 53 (2). pp. 1-11. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019-2.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper examines the factors influencing the expenditure pattern of middle-income households on housing in selected state capital cities in Malaysia by focusing on mortgage and rental expenses. Three state capital cities were chosen (George Town in Pulau Pinang, Kuala Lumpur and Johor Bahru in Johor) and a survey was carried out with 473 observations that were used for estimations by using a censored Tobit model. The results indicate that household income is statistically significant and does indeed affect mortgages but not the rental expenses in the selected state capital cities. Moreover, there is strong evidence of a relationship between family size and the number of rooms with the mortgage and rental expenditure. The analysis also indicates that there is a different pattern of expenditure on mortgage and rental between the different ethnic groups in Malaysia. The Chinese and Indian races tend to spend more on mortgages and less on rental compared to the Malays. Further, the gender and age of household heads are found to be insignificant in terms of influencing mortgages but do affect rental expenditure. In addition, middle-income households in Johor Bahru pay more on mortgages and in Kuala Lumpur such households pay more for housing rental. It is concluded that changes in spending patterns are starkly different across state capital cities in Malaysia and mortgage repayments represent a large proportion of household expenditure.
format	Article
author	Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail,
spellingShingle	Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail, Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
author_facet	Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail,
author_sort	Rusli Latimaha,
title	Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
title_short	Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
title_full	Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
title_fullStr	Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
title_full_unstemmed	Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?
title_sort	middle income household spending patterns on housing in malaysian state capital cities: where does all the money go?
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2019
url	http://journalarticle.ukm.my/14118/ http://journalarticle.ukm.my/14118/ http://journalarticle.ukm.my/14118/1/jeko_53%282%29-5.pdf
first_indexed	2023-09-18T20:06:23Z
last_indexed	2023-09-18T20:06:23Z
_version_	1777407186178146304

Middle income household spending patterns on housing in Malaysian state capital cities: where does all the money go?

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