| Summary: | The increasing worldwide demand for affordable housing and sustainable development leads to highly needed sustainable solutions in the housing sector. Households in the middle-income range struggle to secure the right sustainable home within their budget. In response to the Malaysian Eleventh National Plan (2016-2020), importance is given for every citizen to have affordable housing with sustainable elements, which leads to the trend of integrating affordability housing criteria in sustainable housing development. Thus, the aim of this study is to analyze the critical challenges of the integration of affordable and sustainable housing from the economic, environmental, and social perspectives of the middle-income group. However, this study focuses mainly on the challenges from economic perspectives. The semi-structured interview approach was employed involving several housing developers in the Klang Valley area as the sustainable concept is still early in Malaysia. Results revealed that the high cost of sustainable development, financial constraints of developers, lack of design, technology and expertise, financial constraints, lack of government enforcement and incentives, lack of commitment from stakeholders are the key challenges in developing affordable and sustainable housing. The outcomes of this study will hopefully serve to offer several guidelines for construction players to enhance the quality of life for sustainable communities via the Sustainable Affordable Housing Scheme. © 2020 IOP Publishing Ltd. All rights reserved.
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