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.
Housing tenure choice is one key decision that a household must make. This decision has been established to have direct implications for household housing affordability. This research assessed and compared the housing affordability of owners and renters of organized Private Sector Housing delivery in Nigeria. Data were collected from eleven (11) states and the Federal Capital Territory across the six (6) geo-political zones of Nigeria. A cross-sectional survey design was adopted with multi-stage sampling technique employed to select estates residents for interview. Structured questionnaire were administered on 10% (1,950) heads of households randomly selected from all the occupied houses. The study revealed that 48% of the residents were owners and 52% renters. It was discovered that more owners than renters are under severe housing affordability stress/burden. While 29% of owners enjoy “normal housing affordability” (housing expenditure of 1% - 30%), 41% of renters enjoyed such. Also, while 36% of owners enjoyed “tolerable housing affordability” (30.1% - 50% housing expenditure), 41% of the renters fall within that range. Furthermore, while 35% of owners are theoretically under severe housing affordability stress/burden (with >50% housing expenditure), only 18% of the renters are. The study confirmed that renters enjoyed better housing affordability than the owners. Major policy implications include the need for housing policy and delivery in Nigeria to recognize and facilitate rental housing while steps should be taken to relieve the burden of home ownership by working on mortgage penetration, cost of building materials and other incidental expenses of ownership so as to enhance housing affordability of Nigerians.
Housing delivery in Nigeria has been dominated by the On-Site-Builders, each building incrementally as private individual for his household. The need to take advantage of economy of scale in housing delivery to enhance affordability led to the emergence of Organized Private Sector Housing Delivery in Nigeria. Despite this initiative, the majority of the people are not accessing housing from the Organized Private Sector Housing Developers, still employing their incremental housing approach. This study is therefore a comparative analysis of housing affordability of beneficiaries and non-beneficiaries of Organized Private Sector Housing Delivery in Nigeria. A cross-sectional survey design was adopted. The respondents, beneficiaries and non-beneficiaries, were selected by systematic random sampling technique. Ten percent of beneficiaries’ household heads were selected from the occupied houses (19500) in the estates. The respondents among the non-beneficiaries were selected among the occupied housing units within 1km radius of the houses around each of the sampled estates until equal numbers of respondents from beneficiaries was selected, where possible. Thus, there were 1,950 and 1,332 number of respondents among beneficiaries and no-beneficiaries respectively. The structured questionnaire administered on the heads of households’ elicited information on demographic characteristics (age, sex, household size, etc) and housing affordability variables such as (household income, housing expenditure, access to mortgage, other non-housing expenditure, etc). The questionnaire administered on Organized Private Sector Housing Developers (OPSHDs) seeks information on types of houses produced, selling prices, sales terms, among others. We rely on affordability rating scale of: normal ≤30%; tolerable 30.1-50% and stressed ≥50% to measure and compare housing affordability of beneficiaries and non-beneficiaries. They study revealed that while about 42% of beneficiaries fall within normal housing affordability, about 76% of non-beneficiaries are in that category. About 37% of beneficiaries are in tolerable housing affordability category while only about 16% of non-beneficiaries are there. Those under varying degrees of housing affordability stress are about 21% and 8% among beneficiaries and non-beneficiaries respectively. The major policy implication of the findings is that direct support to non-beneficiaries – the On-Site-Builders by government, through serviced plots and mortgage facility may be a more veritable approach for resolving the current housing crisis in the country.
The decline of housing as a political priority despite growing demand has made housing choice decision more difficult. This study is an examination of the revealed preference of beneficiaries of organized private sector housing delivery in Nigeria. The study relied on data collected from sampled estates from two (2) states in each of the six geo – political zones of Nigeria. These are flats, bungalows, semi – detached and detached houses. In all, about 58% of all beneficiaries choose flats about 31% choose bungalows 7% choose semi – detached houses and only about 4% of all the beneficiaries choose detached houses. The findings from this study showed that about 89% of all beneficiaries choose flats and bungalows. The policy implication of the preponderance of flat and bungalow in the housing choice of beneficiaries is that they are the popular, acceptable and affordable typologies of Nigerians. Therefore, these types of houses should be given priority in funding by National Housing Trust Fund (NHTF).
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