Critical factors affecting affordability of mortgage housing in Kenya

Kieti, Raphael; K'Akumu, Owiti A.

doi:10.1007/s10901-017-9547-4

Cited by 15 publications

(12 citation statements)

References 3 publications

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“…Low household income is recognised by many countries/regions as the key factor of the shelter-cost burden, such as in the UK [17], mainland China [18], Hong Kong China [13], Canada [12], Australia [19], Kenya [20], and Nigeria [21], which can significantly influence housing affordability from the perspective of housing accessibility and purchasing power [22]. Housing affordability suffers when housing prices go too much ahead of household income [15,23].…”

Section: Household Incomementioning

confidence: 99%

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Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households?

Liu

Ong

2021

Sustainability

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Housing affordability is a long-held issue in Malaysia, and housing policies have been implemented for low-income households over the years. However, there is a contradiction that housing affordability of low-income households has not been met, while the bulk of affordable housing is still vacant. In 2019, Malaysia enacted the National Affordable Housing Policy (DRMM) which was intended to improve housing affordability for low-income groups. This paper aims to answer why Malaysia’s long-term implementation of affordable housing policies cannot guarantee housing affordability, and whether the DRMM can effectively improve housing affordability as expected, by comparing the empirical factors of housing affordability. A literature review and a comparative analysis are adopted in the research. The paper concludes that low household income, high land price, construction cost and compliance cost, mismatch of supply and demand in terms of quantity, the instability of the national economy, low home financing ability, and incomprehensive housing planning have caused low housing affordability of low-income groups in Malaysia. The DRMM as anticipated can improve housing affordability by supplying affordable housing more precisely, lowering housing costs, and improving home financing ability. However, the exclusion of household income and economic factors may cause the ineffectiveness of the DRMM in improving housing affordability for low-income households.

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Section: Household Incomementioning

confidence: 99%

“…A tight lending environment further exacerbates the issue of securing home financing from private banks [23]. In general, saving capacity [19,29], household expenditure [21,33], and monthly instalments [20,33,34] are the basic financial costs that influence housing affordability.…”

Section: Capability Of Home Financingmentioning

confidence: 99%

Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households?

Liu

Ong

2021

Sustainability

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“…Other scholars have also identified issues related to the implementation, formulation, and execution of policies, ineffective housing finance, inadequate research and funding, shortages of skilled manpower, and insufficient infrastructural amenities [44,64], corruption and nepotism, security challenges, issues of political interference, ineffective project inspection, poor distribution and allocation, government policy structures [35], and weak institutional frameworks, as well as inappropriate legislation on land tenure system [37]. In other African countries, for example, Ghana, Ethiopia, Malawi, Kenya, Senegal, Algeria, and Togo, among others, housing affordability has also been a major problem experienced by low-and middle-income earners [10,28,65,66].…”

Section: Housing Policy Interventions To Increase Housing Supply In N...mentioning

confidence: 99%

Housing Policy: An Analysis of Public Housing Policy Strategies for Low-Income Earners in Nigeria

Odoyi

Riekkinen

2022

Sustainability

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This article evaluates the Global South housing policy for low-income earners by utilising the Nigerian example to analyse public housing policy strategies used to provide housing to low-income earners. The materials employed in the study were housing policy programme documents provided by various ministries that are linked to housing between 1991 and 2020. The housing policy documents were subjected to qualitative content and thematic analysis. The analysis of the selected housing policy documents showed seven key policy strategies that are intended to strengthen affordable housing development. These strategic themes are funds, schemes, governments, implementation, development, land, and rurality. The findings indicated that the existence of housing policy strategical themes does not translate to affordable housing development and housing affordability for low-income earners, though the effective activation and implementation of strategical themes will promote affordable housing development.

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“…From the financial perspective, issues as limited number of developers with requisite technical and financial strength for large-scale residential real estate investments amidst underdeveloped financial systems with about 5% mortgage loan viability. Some quarters have actually disputed this 5% as generous with the argument that a more realistic statistic suggests that "a trifling 3% of Africans can afford a mortgage" (Kieti & K'Akumu, 2018). When such housing finance impediments are juxtaposed with mean property and title registration costs which stand at over 8% of property value (World Bank, 2015), it can be easily agreed that some form of housing investment dilation is required.…”

Section: Introductionmentioning

confidence: 99%

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

2021

EJBM

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Symmetric movements of real estate investment trust (REIT) capitalization and affordable housing deficit in Nigeria fuelled the motivation of the study on analyzing the implications of an affordable housing ambidexterity of REITs in Nigeria (N-REITs). The focus on REITs was informed by the unsustainable growth in the deficit statistics of affordable housing in Nigeria which implies a think-outside-the-box search for financing panacea. Indeed, there seems a paucity of empirical and practical evidence of such ambidextrous diversification for N-REITs, so the study was aimed at conducting a strength, weakness, opportunity and threat (SWOT) analysis of affordable housing ambidexterity of N-REITs. Survey research method was employed on a sample frame of housing delivery stakeholders. Sample size of 369 was determined using Freund and Williams formula, while the research instrument was a self-administered e-questionnaire. Data was obtained from primary sources, and further subjected to descriptive analysis. The study found that professional investment management competency was the most dominant strength, 10% investable income was the most significant weakness, significant room for rise in market share was the most significant opportunity, while effect of systematic risk on sustainability planning was the most significant threat to N-REIT ambidexterity towards affordable housing investment in Nigeria. The study concluded that the professional investment management quality of REITs, in comparison with non-listed direct real estate companies would envisage a robust and sustainable contribution to increase in affordable housing stock in the country. It was recommended that management of N-REITs should leverage on their professional investment management strengths to explore blue ocean strategies for an ambidextrous attitude that enhances the growth and sustainability of affordable housing units, in addition to the employment of risk analysis, management and mitigation strategies to limit the effect of volatilities from macroeconomic risks.

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Critical factors affecting affordability of mortgage housing in Kenya

Cited by 15 publications

References 3 publications

Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households?

Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households?

Housing Policy: An Analysis of Public Housing Policy Strategies for Low-Income Earners in Nigeria

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

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