Effect of institutional context and finance context of housing finance on home ownership among low-income earners in Bauchi

Abstract

Purpose The purpose of this paper is to evaluate the effects of housing finance institutional and financial context on beneficiaries’ context to low income earners in Bauchi Local Government Area, Bauchi, Nigeria Design/methodology/approach This paper adopted a quantitative research approach. Self-administered structured questionnaires were used to collect information from 357 primary school teachers in Bauchi Local Government Area, Bauchi, Nigeria. Partial least squares-structural equation modeling was used to analyze the data collected using SmartPLS 2 software Findings This study revealed that effectiveness of financial institutions and their performance has significant positive causal effect on low income earners housing ownership context, which shows that performance and effectiveness of the housing finance institutions is vital to housing ownership for the low income earners in the study area. Thus, performance of housing finance institutions and their effectiveness has direct effects on low income earners housing ownership through finance affordability Practical implications The prime consumer of these research findings are the financial institutions, this will make them bulk up in terms of their performance and effectiveness toward housing finance accessibility and affordability to the low income earners such as the primary school teachers in the study area. Originality/value This paper used the technology organization environment theory, which is a multi-perspective theory to evaluate the concepts of institutional, finance and beneficiaries context with respect to housing finance in Bauchi by conceptualizing institutional context as effectiveness and performance, finance context as affordability and accessibility and beneficiaries context as ownership.

Economic Potential Gain, Income Uncertainty, and Rural Migrants’ Urban Homeownership: Evidence from China

“…Housing tenure choice is a significant decision made by households when households are mature enough to choose a certain type of tenure to maximize a multi-period utility within a given budget constraint [18], no matter whether it is in China or in other countries, for both in-border migration and international migration [19]. Increasing attention has been paid by existing works in the literature to low-income households' homeownership vulnerability, e.g., African-Americans in the U.S., residents in Africa, or immigrants in the Middle East region [20][21][22]. Both potential earnings and fluctuations in income have been identified to affect the tendency to own a home, respectively [15,23].…”

“…In addition, the tendency of being a homeowner increases with the proportion of housing costs that can be mortgaged [18]; thus, the availability of housing credit is crucial in determining housing tenure choice (e.g., [30,59,60]). Especially for developing countries, the performance of housing finance institutions and finance affordability have been identified to have a direct effect on low-income earners' homeownership [20]. In China, with rising housing prices, increasingly more households have to borrow mortgages to acquire a home in urban areas [29].…”