Central to this PhD research was the problem of the lack of affordable housing for young starters in Malaysia. The solutions for affordable housing that are available in the market do not truly solve the problem from the customer’s point of view. Hence, it was important to analyse the contributing factors associated with the term ‘affordability’. The term touches upon interconnected elements that cover many issues ranging from demand (housing needs, demographics, household income, quality housing) to supply (the authorities’ requirements, design, cost, sustainability and procurement). In this thesis, we discuss some of the problems related to the supply and demand issues and examine a possible intervention to solve the problem.This research contributed to the body of knowledge by employing a prescriptive strategy and designing an innovative flexZhouse business model (BM), and by applying an in-depth strategy that revealed why the problem exists and why there is still no appropriate solution. The result provides a description of the situation that young starters find themselves in, the reactions of the industry’s key players and the policies that hamper innovation in the housing market.