EVALUATION OF HOUSING DELIVERY STRATEGIES LOW INCOME EARNERS

ABSTRACT
Housing is the leading component of urbanization and access to quality, affordable housing is critical in any society. The housing situation in Edo state just like in most cities in developing countries is such that housing demand far outstrips supply. The housing market providers have been unable to provide affordable housing to middle and low income earners in Edo state. This problem has often been linked to land acquisition problem, low income levels of the individuals in this category and their inability to access funds, high cost of building materials, statutory regulations and non-use of locally available building materials. The purpose of this study was to investigate low income affordable housing strategies for mass housing development in Edo state in Nigeria. The study adopted descriptive survey design. The target population of this study was 120 property development entities in Edo state, Nigeria. A sample size of 30 was drawn from the target population through simple random sampling. A questionnaire was used as primary data collection instrument. Data was then be coded and tabulated to enable the responses to be grouped into various categories using Statistical Package for Social Science (SPSS). Frequency distribution tables were summarized where percentages and other diagrams such as bar charts, grouped frequency distributions and pie charts were used for data presentation. Descriptive statistics such as means, standard deviation and frequency distribution were used to analyze the data. Inferential statistics correlation and regressions analysis was done to establish the extent to which the said factors influence provision of low cost housing solutions in Edo state. The study discovered that cost and availability building materials, cost and availability of land and levels of infrastructure development influenced provision of low cost housing. The study recommended that that a comprehensive and well-coordinated support infrastructure is central to the provision of low cost housing. The high expense of developing houses due to high costs of building materials, land and infrastructure which has kept off potential developers from the low cost housing sector needs to be addressed. Increased use of alternative and cheaper building materials needs to be encouraged and the Government needs to facilitate development of off-site infrastructure and land servicing which is a critical component of the realization of low cost housing.

CHAPTER ONE
INTRODUCTION
Background of the study
Housing is paramount to human existence as it ranks among the top three needs of man. The provision of adequate housing in any country is very vital as housing is a stimulant of the national economy (Erguden, 2001). Housing is a set of durable assets, which accounts for a high proportion of a country’s wealth and on which households spend a substantial part of their income. Housing has been a concern of individual, families, group and government since the down of urban civilization. This problem has often been linked to land acquisition problem, low income of the individual, high cost of building materials, statutory regulations, non-use of locally available and cheap alternative building materials. It is usually a situation of either the government has failed in meeting up with its obligations or that the individuals had remained for some times incapacitated to be able to break through various bureaucracies in land acquisition procedure. One of the greatest problems in the world today is that of provision of shelter (Golland, 2006).

Nigeria is experiencing rapid urban growth in a context of limited economic growth and restricted land supply. Rental housing is expanding as only a few people can afford their own homes. Rental accommodation in Nigerian towns has usually been associated with low-income households but it has also become the main form of housing for middle- income households (Mwangi, 1997). The shelter situation in Edo state just like in most cities in developing countries is such that housing demand far outstrips supply. The low house markets providers have been unable to provide low and affordable housing to middle and low income earners in Edo state. The need for new housing in urban areas currently stands at 150,000 units annually while only 23 per cent of this demand is being met. The gap between supply and demand is more relevant to low and middle income households who represent 48 percent of the required new houses. The lack of appropriate housing has resulted in the expansion of informal settlements such as slums. Many people are forced into overcrowded establishments or are left completely homeless. Some researchers suggest that over 60% of Edo state’s population resides in slums. The current living situation of many Nigerians has resulted in insufficient facilities, poor health standards, lack of infrastructure and environmental degradation. Without the security of a safe home, it is difficult to maintain employment, attend school, care for a family and ensure both mental and physical health. The economic, social and physical welfare of a household and community is strongly related to their access to decent and affordable housing.

Despite some attempts at achieving decent housing for Nigerians, Nigeria has, on the whole, failed to address the dire housing conditions of her population. Past governments had tended to leave this important sector almost entirely to private sector effort, concentrating itself on the provision of limited number of residential quarters for its deserving officers. The situation has been partially alleviated through the activities of the private sector housing developers, who have been a key supplier of housing, particularly in Edo state (Hassanali, 2009).

There are however very few players in the low cost housing industry and there seems to be a minimal interest of other private sector housing developers to venture in. These private sector developers are successful in the middle and high income housing markets and this implies that they may have the capacity and skill set to supply the low-income housing required to reduce the housing shortfall in the country (Hassanali, 2009). They have however, shied away from the low income market mainly because the profitability margins are lower as compared to housing developments for the other markets.

• Low Cost Housing Market Players
The construction of low cost and affordable homes for the lower and middle income workers in the greater Edo state is being undertaken by various housing developers. In the year 2007, the private sector commenced construction of housing units worth N. 9.8 billion and registered growth of 6.9% over the previous year (Statistical Abstract, 2008). But despite intensive overall private-sector activity, these private developers have mainly concentrated in the middle and upper segments of the market with relatively little focus on the low-income market. The low income housing units currently constitutes less than 30% of the private development portfolio, yet this is the segment where the need is particularly acute (Otiso, 2002).

In the past, the government took up the role of housing supplier by controlling planning, land allocation, and development and maintaining housing estates, through the National Housing Corporation (NHC). The NHC is charged with the responsibility of providing subsidized housing and implementing government housing policies and programmes through tenant purchase, mortgages, rental and rural housing loan schemes (NHC, 2010). While theoretically this should have been feasible, an acute problem has arisen as central government expenditure on housing has been on a consistent decline, stemming from activities of the parastatals, price controls, inappropriate building regulations and codes as well as a lack of basic planning and provision of services (Otiso, 2003).

NGO’s have had to come in to fill in the gap in the housing shortage especially for the low income households. Habitat for Humanity Nigeria and K-Rep Development Agency has also provided limited project-based housing assistance for low income households with less than 500 housing units.

A few other development agencies have also emerged seeking to address the problem of poor urban dwellers. Jamii Bora Bank, a deposit taking Micro Finance Institution, provides a wide range of services to the very poor, and is now engaged in a low cost housing development project for its members, providing housing microfinance loans to the families involved.

• Statement of the Problem
With increased urbanization adequate, affordable and decent housing in Edo state has become a mirage with the most affected being the low and middle income earners who form the majority of Edo state’s urban population. Urban planning has not been able to keep up with the rapid urbanization in Nigeria and the demand of housing far exceeds the supply. The need for new housing in urban areas currently stands at 150,000 units annually while only 23 per cent of this demand is being met. The gap between supply and demand is more relevant to low and middle income households who represent 48 percent of the required new houses. Ideally, the state of increased urban population would seem as a great opportunity for developers as it translates to increased demand for housing; however, this isn’t the case. Many developers have mainly concentrated in the middle and upper segments of the market with relatively little focus on the low-income market. The low income housing units currently constitutes less than 30% of the private development portfolio, yet this is the segment where the need is particularly acute (Otiso, 2002).

This research sought to bring out factors that influence provision of low cost housing solutions from the perspective of existing and potential housing developers in this market.

• Purpose of the Study
The purpose of this study was to investigate the low income affordable housing strategies for mass housing development in Edo state in Nigeria.

• Objectives of the Study
This study sought to achieve the following objectives:

• To establish how the building materials influence provision of low cost housing in Edo state

• To examine how cost of land influences provision of low cost housing in Edo state

• To examine how availability of land influences provision of low cost housing in Edo state

• To examine how infrastructure development influences provision of low cost housing in Edo state

• Research Questions
The following research questions guided the study;

• How does building materials influence provision of low cost housing in Edo state?

• How does cost of land influence provision of low cost housing in Edo state?

• How does availability of land influence provision of low cost housing in Edo state?

• How does infrastructure development influence provision of low cost housing in Edo state?

• Significance of the Study
The findings of this study were found to be of great important to various stakeholders in the construction and housing industry. Property developers are able to gain insight on the low income affordable housing strategies for mass housing development solutions which will enable them to define measures that will enhance provision of low cost houses in the County. Potential home owners will gain insight on what factors to consider when making choice for the ideal low-cost housing.

Our Governments Vision 2030 is founded on three pillars; economic pillar, social pillar and political pillar. In its Social pillar, the Government is to plan for adequate and affordable housing for its citizens. The study was fond to be significant to the government, mainly the housing policy makers as they gain insight on challenges facing provision of low income housing development in the county and the country at large. This will enable the policy maker to formulate housing policies that will enhance provision and development of quality, adequate and affordable houses.

The findings of the study were also significant to scholars and researchers as they will broaden the knowledge on low income affordable housing strategies for mass housing development solutions in urban areas. The study also forms the foundation for further research on the field.

• Delimitation of the Study
The study sought to identify low income affordable housing strategies for mass housing development solutions in Edo state, Nigeria. The study was undertaken in Edo state, Nigeria and sought this from the relevant stake holders in the housing industry.

• Limitation of the Study
The study was limited in seeking to identify low income affordable housing strategies for mass housing development solutions in Edo state, Nigeria. The study would have covered more counties but limited time and financial resources constrained the study. The researcher drew a time schedule and a budget that enabled the study to be completed using the budget drawn and within the required time of the study.

• Definitions of Significant Terms
Affordable housing - is housing that is appropriate for the needs of a range of low to moderate income households and priced so that low and moderate incomes are able to meet their other essential basic living costs.

Low income earners - Low income earners can be divided into two categories, namely, the low income earners who have no gainful employment and the low income earners who are employed junior workers in government and other private establishments. They can also be self-employed.

Urban low cost housing - is regarded a s housing comprising a minimum of two habitable rooms, cooking area and sanitary facilities, covering a minimum gross floor area of 40 square meters for each household.

• Organization of the Study
The study was organized into five chapters. Chapter one covers the background of the study, statement of the problem, purpose of the study, research question, significant of the study, limitations of the study, delimitation of the study, definition of significant terms and the organization of the study.

Chapter two consist of the literature review which is sub-divided into different sub- headings concerning low income affordable housing strategies for mass housing development in Edo state in Nigeria. Chapter three cover the research methodology divided into; research design, target population, sample and sampling procedures, research instrument, validity of the instrument, reliability of the instruments, data collection and data analysis. Chapter four represents research findings, analysis and discussion of the findings. Chapter five focus on the summary of the study, conclusions and recommendations.

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Item Type: Project Material  |  Size: 64 pages  |  Chapters: 1-5
Format: MS Word  |  Delivery: Within 30Mins.
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