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.
Highlights
Housing problem in Nigeria, the urban centres, has assumed a crisis proportion
This research is anchored on housing and other goods theory and the data analysis relied on the Residual Income Approach to establish the housing affordability profiles of the beneficiaries
This is because from our anchor theory, we established that by the nature of housing, it cannot be consumed in part, a certain minimum must always be consumed by a household; and too often, housing usually take first priority, and it is whatever that is left that is always available for other non-housing goods of necessities (Jameson & Nana 2004)
Summary
Housing problem in Nigeria, the urban centres, has assumed a crisis proportion. The most disturbing is the paradox in our urban areas where both vacancies and homelessness are on the increase This is where housing affordability comes in. All housing policies in the country to date have it as their goal to ensure “that all Nigerians have access to decent and sanitary accommodation at affordable costs with secured tenure.”. This goal remained elusive and this has brought the issue of housing affordability to the fore in public policy discourse.
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