DEVELOPING THE POLICY FRAMEWORK FOR AFFORDABLE AND LIVABLE SHARED

DEVELOPING THE POLICY FRAMEWORK FOR AFFORDABLE AND LIVABLE SHARED HOUSING IN THE PRIVATE RENTAL RESIDENTIAL MARKET IN MALAYSIA

1Sr Dr Ainoriza Mohd Aini

Sr Dr Zafirah Al Sadat Zyed 

Sr Dr Ahmad Fawwaz Saleh

2Ts. Dr Ahmad Firdhaus Arham 

3nur Diyana Nadirah Mohd Hadi 

1Universiti Malaya 

2Universiti Kebangsaan Malaysia 

3Institut Penyelidikan Pembangunan Belia Malaysia

ABSTRACT

The persistent rise in urban housing prices and rental costs has rendered housing increasingly unaffordable for many Malaysians, particularly in high-demand urban centres such as Kuala Lumpur and Selangor. Stagnant wage growth, limited access to homeownership, and the concentration of employment opportunities in urban areas have further exacerbated this affordability gap. Against this backdrop, shared housing in the private rental market has emerged as a popular and practical solution among young working adults, students, and migrant workers. Instead of renting entire housing units, tenants are increasingly opting to rent individual rooms, attracted by lower upfront costs, flexible lease terms, and the ability to access urban living despite constrained financial circumstances. This phenomenon underscores the structural affordability challenges shaping the rental housing submarket in Malaysia.  This study aims to develop a policy framework for affordable and livable shared housing in the private rental market. Using a mixed-methods approach, surveys were conducted among tenants aged 18 to 40 in Selangor and Kuala Lumpur, alongside interviews with both tenants and landlords. This approach enabled a nuanced understanding of tenants’ lived experiences, motivations, and perceptions, while also capturing landlords’ perspectives on management, compliance, and market practices. 

Findings from the study reveal that shared housing serves as a critical housing option in mitigating the effects of rising urban rents and stagnant wages. It provides a flexible and affordable alternative for transient populations, early-career tenants, and individuals with limited capacity to secure entire housing units. High concentrations of shared housing listings in urban hotspots highlight the centrality of this model to urban housing affordability. However, the study also reveals significant shortcomings in physical conditions and regulatory oversight. The absence of clear policies and enforcement mechanisms has led to widespread ad-hoc renovations, overcrowding, and poor fire safety compliance, which compromise both habitability and tenant well-being. These conditions underscore the urgency of formalising regulatory structures for shared housing in the private rental market. 

The study recommends a policy framework anchored on three (3) key measures. First, a clear legal definition of shared housing is needed, defining it as a property rented by three or more unrelated individuals sharing facilities, thus distinguishing it from conventional rental arrangements. Second, a tenant registry under the Ministry of Housing and Local Government (KPKT) or local authorities should be established, with enforceable tenancy agreements to protect both tenants and landlords. Third, a licensing system for units housing more than five occupants should be introduced under the Local Government Act, enabling local authorities to regulate occupancy, enforce safety standards, and curb overcrowding. Together, these measures would formalise shared housing as a legitimate 

part of the urban rental market, ensuring affordability, livability, and better protection of tenant wellbeing.

Keyword:    Shared Housing, Co-Living, Landlord Experiences, Klang Valley, Private Rental Market