Moderating effect of government policy on the relationship between low-cost housing demand-supply gap and COVID-19 impact

PurposeThe COVID-19 impact across major sectors did not exempt the low-cost housing (LCH) sub-sector. This may have increased the existing LCH demand-supply gap, especially in developing countries such as Malaysia. Studies showed that government policy (GP) aids in mitigating COVID-19 impact on goods and services, including housing-related issues. However, there is an academic literature scarcity regarding GP on LCH demand-supply gap during the COVID-19 crisis in Malaysia. Hence, this study aims to investigate the moderating effect of GP on the relationship between LCH demand-supply gap and COVID-19 impact in Malaysia.Design/methodology/approachThe research utilised a quantitative method in collating the data from four major cities in Malaysia. SmartPLS was utilised to analyse the usable 305 questionnaires retrieved from respondents. Structuralist Theory supported the developed framework.FindingsFindings show that GP moderates the relationships between the LCH demand-supply gap and COVID-19 impact on Malaysia's low-income groups' (LIGs) homeownership delivery. It implies that the study's findings provide more understanding of issues influencing LCH demand-supply gap in the COVID-19 era via applying GP to mitigate the gap and improve homeownership for the disadvantaged.Practical implicationsThe study intends to stir policymakers toward formulating policies and programmes that will mitigate LCH demand-supply gap during the present and future pandemics.Originality/valueBesides the theoretical value of the developed model, policymakers can use the study's recommendations to mitigate future LCH demand-supply gaps during pandemics in developing countries using Malaysia as a case study.