Macroeconomic Policies and Housing Development in Lagos State, Nigeria

Abstract

Housing is crucial for national development as a capital product in terms of both economy and welfare. Macroeconomic policies comprise of fiscal policy, monetary policy, and exchange rate policy. These policies affect taxes, tariff, interest rate, inflation rate, employment rate and purchasing power. This study examined the effects of macroeconomic policies on housing development in Lagos State, Nigeria. The macroeconomic factors affecting housing development were incorporated into the questionnaire administered to real estate developers in Lagos State. The methods of analysis adopted were descriptive, correlation and multiple regression. The findings revealed that increase in interest rate, inflation rate, exchange rate and tariff will increase cost of housing development by 10.6%, 8.5%, 13.5% and 16% respectively. In conclusion, the current macroeconomic policies should be reviewed for favourable housing development, national capital formation of employment generation, income production and economic growth in Nigeria.