Chief statistician Uzir Mahidin said the increase, with an average annual growth rate of 2.5%, was in line with Malaysia’s slowing population growth.

“From 1970 to 2025, the highest average annual growth rate of housing units was recorded in 1980 at 4.5%, while the highest population growth was recorded in 1991 at 2.6%.

“This aligns with Malaysia’s slowing birth rate, indicating that the country is now entering its fourth stage of demographic transition,” he said in a special report on living quarters released today.

According to the demographic transition model, widely used to refer to the historical shift from high to low rates of birth and death, the fourth stage occurs when birth and death rates are both low, leading to total population stability.

Uzir said Putrajaya recorded the highest growth rate for housing units in 2025 at 4.1%, followed by Johor (3.0%) and Melaka (2.9%).

Landed properties made up the majority of housing units at 73.1%, followed by high-rise units (22.8%) and other types (4.1%).

By ethnicity, Bumiputera households held the largest share of home ownership at 63.3%, followed by the Chinese (29.5%) and Indians (6.7%).

Uzir said about 1.5 million households were living in rented homes in 2020, with most paying monthly rent of below RM1,499. Lower rent was largely associated with landed homes, while higher rent was more common with high-rise units.

Of the 2.2 million adults surveyed on housing plans, 37.4% said they intended to own a home in more than six years, while the rest planned to do so sooner.