Housing appears to be one of the hottest subject at the present time. It is the purpose of this dissertation to analyse the housing situation in Batu Pahat. Analysis is concentrated on the urban areas of Batu Pahat. In this context, the writer is making a study of the housing development of Batu Pahat of the past, present and the future. First and foremost, Chapter 1 introduces the geographical and historical background of Batu Pahat. This will give us an insight of the district that we are going to study and analyse. In chapter 2, Public Housing Policy is discussed as this vital to any future housing developments. What are the governments policy, it's aims, it's formulation etc. influences the decision making process of the developers on what type of priority should be stressed upon. The workings of market mechanism, trends and prices movement and it's characteristics as compared to other local markets are analysed in the third chapter. In any development, finance plays a critical role. The role of the financial community involved in financing the nations housing and building industry, it's resources, limitation etc, are discussed in Chapter 4. In the final chapter, problems of housing encountered by the different parties concerned are discussed and here the writer comes up with suggestions and proposals to ease the housing dilemma.