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Housing Tenure Choice and Housing Affordability in Nigeria: A Comparative Analysis of Owners and Renters of Organized Private Sector Housing

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  • Samson Akinbamide Omobayo Adegoke
  • Tunde Agbola

Abstract

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.

Suggested Citation

  • Samson Akinbamide Omobayo Adegoke & Tunde Agbola, 2020. "Housing Tenure Choice and Housing Affordability in Nigeria: A Comparative Analysis of Owners and Renters of Organized Private Sector Housing," International Journal of Social Science Studies, Redfame publishing, vol. 8(4), pages 142-149, July.
    • Handle: RePEc:rfa:journl:v:8:y:2020:i:4:p:142-149
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    References listed on IDEAS

    as
    1. Dagmar Špalková & Jiøí Špalek, 2013. "Housing Tenure Choice and Housing Expenditures in the Czech Republic," MUNI ECON Working Papers 11, Masaryk University, revised Aug 2013.
    2. Michael Stone, 2006. "What is housing affordability? The case for the residual income approach," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 151-184.
    3. Nandinee Kutty, 2005. "A new measure of housing affordability: Estimates and analytical results," Housing Policy Debate, Taylor & Francis Journals, vol. 16(1), pages 113-142.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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