HOUSING AFFORDABILITY OF PUBLIC HOUSING (BTO) AFFECTING YOUNG COUPLES MARRIAGE DECISION

Abstract

This research paper aims to present a systematic review of the past literatures and conduct an in-depth analysis on the affordability of the Build-To-Order (BTO) housing as it is the minimum entry level flat that young couples could afford. It will highlight how the affordability, dependent on the price, impacts the marriage decision among younger couples. Young adults are defined as those between the age group of 20 – 39 years old. In Singapore, the focus has always been the increasingly high housing price. Though government interventions have set in to stabilize the market, it is not certain how successful the young adults perceived the interventions to be. Several tests methods were used, comprising of the Housing Cost Burden Approach as well as Regression Analysis. Firstly, the Housing Cost Burden approach determines household’s affordability based on their Mortgage Servicing Ratio (MSR). The overall results showed that majority of the household are able to afford a three-bedroom unit. Secondly, survey data have shown positive response rate of 89% with a sample size of 267. Majority are aged between 20 – 29 years, falling within the typical median age of marriage. The author also defines “Real Affordability” to be the difference between the actual and expected housing price in which a regression is conducted. Results had revealed that an increase in affordability by $10,000 will decrease 0.03 years of expected age of marriage. Therefore, with all the research findings, it would provide policymakers with a sense of the market sentiments among young couples.