TITLE:
Housing Affordability and the Organized Private Sector Housing in Nigeria
AUTHORS:
Samson Akinbamide Omobayo Adegoke, Tunde Agbola
KEYWORDS:
Organized Private Sector Housing Developer, Housing Expenditure, Housing Affordability Profile, Housing Affordability Rating Scale, Mortgage Penetration
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.4,
April
15,
2020
ABSTRACT: Growing housing deficit in Nigeria, particularly in
urban areas, has resulted to various housing problems such as
overcrowding, homelessness, slum and squatter developments. Despite the myriad
of housing policies and programmes to solve the housing deficit, the desire
goals have not been achieved, hence the adoption of organized Private Sector
housing delivery in 2002. This research is an assessment of the Affordability
of Organized Private Sector Housing Delivery in Nigeria. We adopted
cross-sectional survey and multi-stage sampling technique. Two states with the
prevalence of organized private sector housing developers (OPSHD) in each of
the six (6) geo-political zones of Nigeria were selected. Ten Percent (1950)
households were randomly selected from the occupied houses (19,500) in all the
estates. The structured questionnaires administered on 1950 household heads
focused on demographic characteristics (age, sex, and household size) and
housing affordability variables (income, housing expenditure and access to
mortgage). Questionnaire administered on OPSHD focused on types of houses
produced, selling prices and terms. Affordability rating scale (normal ≤ 30%;
tolerable 30.1% - 50% and stressed > 50%) was used to measure housing affordability. The
study revealed that 42.4%; 36.9% and 20.6% of households have normal, tolerable
and stressed housing affordability respectively. The implication of these
findings is that organized private sector housing is not affordable to most
Nigerians, particularly the low and medium income households; and therefore
need to be assisted. A more efficient mortgage with better penetration among
the low and medium income household is desirable. Also, “rent-and-own” option
should be considered to enhance affordability of low and medium income
households.