The Impact of Institutional and Legal Frameworks on Housing Affordability in Malaysia: An ARDL Approach Case Study
Siti Nur’amalina binti Syeddin, Zarul Azhar bin Nasir, Nor Zarina binti Mohd Salim, Noormahayu binti Mohd Nasir, Muhammad Adidinizar bin Zia Ahmad Kusairee

Abstract
Housing affordability has emerged as a critical issue of discourse, owing to a substantial rise in the number of unaffordable houses in Malaysia. To contain this issue, the Malaysian government has decided to reform several housing programmes. However, the decision leaves the public with more questions regarding its impacts on affordability among households, especially among lower income earners. This study was designed to address these inquiries by estimating the impact of institutional and legal frameworks, with a specific focus on corruption and trade openness, on housing affordability. The study employed the Auto Regressive Distributed Lag Auto Regressive Distributed Lag (ARDL) model approach to effectively analyse the dual short-term and long-term impacts of institutional and legal frameworks on housing affordability. The findings reveal the existence of both long-term and short-term relationship between trade openness and housing affordability. In addition, corruptions exhibit a pronounced impact in the long run, but not in the short run. The result suggests that trade openness emphasize the crucial influence of legal and institutional frameworks in shaping the attainment of housing affordability in Malaysia. Yet, the findings from this study touches on essential aspects of our society, encompassing economic well-being, social equity, urban development, and environmental sustainability. Its significance lies not only in its potential to shed light on existing challenges but also in its capacity to inspire positive change and the development of policies that foster a better quality of life for all.

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