The government plans to use big data analytics and artificial intelligence (AI) to determine affordable housing needs based on locality, income levels and market demand under the National Housing Policy 2026-2035.

Housing and Local Government Minister Nga Kor Ming said the existing RM300,000 ceiling for affordable homes was a “one-size-fits-all” approach that did not reflect differences in housing costs and affordability across regions.

Citing data from the National Property Information Centre (NAPIC), Nga said affordable homes in the Klang Valley could be priced at around RM500,000, compared with about RM300,000 in Kelantan. He noted that applying the same price ceiling to locations such as Kuala Krai and Bukit Bintang would not accurately reflect local market conditions.

The new approach will analyse factors including household income, location, region, housing type and demand. The government has obtained approval from the Finance Ministry to introduce the big data analytics system from next year, allowing developers to refer to locality-specific data when planning new projects.

Nga said Malaysia’s housing issue was not necessarily a shortage of supply, but a mismatch between the types and locations of homes being developed and what buyers need. The government expects data-driven feasibility studies to help developers build homes that are more aligned with actual market demand, potentially reducing the number of unsold properties.

The initiative forms part of the National Housing Policy 2026-2035, which aims to address rising living costs, demographic changes, housing supply-demand mismatches, unsold properties, and delayed, troubled and abandoned projects. The policy comprises six focus areas, 17 strategies and 59 action plans, including a target to provide one million affordable homes by 2035.

Meanwhile, Nga said the reported decline in home ownership among the M40 group could partly reflect changing lifestyle preferences. Citing a Rehda Institute survey, he said 24% of respondents preferred renting as they did not want to be tied to long-term bank loans and instead preferred having greater disposable income.

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