Effectiveness of Inclusionary Zoning Policies in Transit-Oriented Development Areas: A Comparative Analysis of Kuala Lumpur and Selangor

Transit-Oriented Development (TOD) has become a key urban planning strategy in Malaysian metropolitan areas, yet housing affordability remains a critical challenge as property values often rise beyond middle and lower-income households' reach. This study examines how inclusionary zoning (IZ) policies address this affordability gap by comparing Kuala Lumpur's voluntary Residensi Wilayah approach with Selangor's mandatory Rumah Selangorku 3.0 framework. Using a comparative case study methodology analysing secondary data from four TOD areas (MRT Titiwangsa, MRT Taman Tun Dr Ismail, MRT Jalan Reko, and MRT Bandar Tun Hussein Onn), the research evaluates policy effectiveness across three distinct analytical layers: policy design, implementation outcomes, and market context. Findings reveal that mandatory IZ policies create stronger foundations for affordable housing provision than voluntary approaches. Kuala Lumpur's voluntary policy resulted in affordable housing located 0.6 to 4.0 km from transit stations, while Selangor's mandatory approach achieved better integration of diverse price points within developments. However, both regions face implementation challenges including insufficient enforcement, lack of location requirements, and affordability thresholds that remain inaccessible to target households. The study recommends, in order of feasibility, strengthening mandatory requirements with robust monitoring, introducing maximum transit-distance rules, reducing reliance on alternative compliance, recalibrating affordability thresholds, and enhancing transparency in implementation reporting.