This dissertation is a study of housing problems in Penang with special case study in Georgetown, Penang. It attempts to begin with history of landownership in Penang from her pre-colonial era as well as the housing situation at the present time in Penang State especially Georgetown and its surroundings. The writer tries to outline and define the housing problems faced within the state both from view of house purchaser and private developer especially in low cost housing provision. Public Housing Policy, what is the government's policies towards the housing industry and how its aims influence the developer's decision making process and what type of priority i.e. houses and high rise flats should be stressed upon. Study of housing market in Penang. The pattern of house prices since the last decade (i.e. 10 years) and how prices have increased. Why they have increased and the effect on the population namely the low income group. Sources of housing finance available within the State, sources of finance both for the developer and house purchaser is outlined. The writer has also tried to redefine the major housing problems in Penang and towards overcoming these major problems, the writer has in turn suggested a few suggestions and proposals. The proposals and suggestion outlined are those of the writer which have been adjusted to adopt to the present housing conditions in Penang.