The Forces of Demand and Supply as It Affect the Provision of Residential Properties in an Urban Area
CHAPTER ONE
AIM AND OBJECTIVES
The aim of the study is to examine the demand and supply for residential housing in urban areas in Ogun State with particular reference to Abeokuta as a case study.
In order to achieve the above aim, the following were the objectives;
- To assess the contribution of the public and private sector in housing supply in Abeokuta
- To examine the factors that affect private sector housing supply in the study area.
- To make recommendations to help alleviate the housing supply problems in Abeokuta.
CHAPTER TWO
LITERATURE REVIEW
HOUSING IN NIGERIA
Governments all over the world are directly and indirectly involved in matters relating to housing in terms of its housing provision, regulation and control, development and administration. In Nigeria, the involvement of government in housing dates back to the colonial era and has since continued thereafter. Adekoyejo (2001) examined the government’s role in the development of housing in Nigeria under three different periods: The colonial period; The post independence period and The period of the civilian Administration between 1979 and 1983.
Nigerian government’s involvement in housing could be traced back to the colonial/pre-independence period, when activities were chiefly on construction and provision of official quarters to the expatriate staff and selected indigenous public service employees, mainly in the areas designated as Government Reserved Area (G.R.As). This is the separation of reserved areas from the traditional core areas of particularly the regional (now state) capitals. Credited to have spurred the colonial government’s interest in public housing program was the outbreak of the Bubonic Plague in Lagos between 1925 and 1928 which in turn led to the establishment of Lagos Executive Development Board (LEDB) in 1928. These and other similar programs and projects were done autocratically without inputs of civil society and relevant stakeholders (Agunbiade, 2001).
Basically, the encounter in both the urban and semi-urban centres of Nigeria, in particular, is the situation where housing demand outstrips supply with the consequence of prevalence of shanties and slums in our towns and cities. An urgent attention is needed to arrest the ugly situation as pertain to housing problem in Nigeria. Nigeria needs to provide her citizens with decent and affordable houses. Housing constitutes an essential need to complement other social assets if human beings are to lead a productive life. An issue like this could not be discussed without a sure anchor on the review of some past works as related to the subject matter. Housing subsidies are the total payment by the government to a corporate body or individual households to cover the differences between the markets determined price and quantity on the one hand and those desirable from a national development point of view on the other (Mandelker and Montgomery, 1973). Housing subsidy aims at achieving a certain and predetermined housing policy. Housing policy is generally designed mainly to resolve social problems on housing shortage, excessive house rents, and emergence and/or existence of slums.
Subsidies are aids granted to the individual members of the public or private commercial enterprise by the government. This is monetary grant by the government to support an activity that is of public interest. Housing subsidies can therefore be seen as any aspect of government policy in Housing that results in a household bearing less than the full cost of the housing (Agbola and Kassim, 2007). Large proportion of population lives in urban centres where they can enjoy basic social amenities and infrastructural facilities. However, low income people spend a larger portion of their income on housing than the high-income people (Onibokun, 1990).
In view of the fact that income are unevenly distributed and there is wide gap in between the income of affluent few and the poor majority, it is rational and logical to argue that housing imperfection will be prevalent and that the national government must intervene to correct these market inefficiencies by providing housing subsidies (Agbola and Kassim, 2007). There are various types of housing subsidy and contain criteria such as income, age of household head, resident location and current housing status could be used to determine the type and amount of subsidy to be granted to an individual within the policy framework. Housing subsidy could be in cash or in kind, provided by the government and or private establishments for their staff. This is mainly to provide for identified housing objectives and to solve specific housing problems.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In the course of carrying out the research, the researcher was able to do justice to the aim and objectives of the study, data collection sources, the problems of the study as well as the conceptual and theoretical framework have been examined.
For the purpose of achieving the aim and objectives of the study, this chapter shall attempt to examine the study population, sample frame, sample size, source of data, data collection instrument, questionnaire design and as well as methods of analysing and presenting the data collected, not leaving out the description of the study area.
TARGET POPULATION
The target population is the group or the individuals to whom the survey applies. Therefore, for the purpose of this study the target population are professional Estate Surveying and Valuation firms operating within Abeokuta metropolis.
SAMPLING TECHNIQUES
In order to do justice to establishing of the actual sample size, selecting the appropriate sampling techniques needs to be considered so as to obtain accurate information from the respondents. In research, there are various types of sampling techniques and these include; systematic sampling random sampling, stratified sampling, purposive sampling, cluster sampling double sampling and multi-stage sampling.
All these are the various techniques of sampling but for this research work, random sampling were adopted in the course of the study.
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION
ANALYSIS OF RESPONSES OF HOUSING USERS
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
SUMMARY OF FINDINGS
After a detailed analysis of data gathered from respondents, which follows by interpretation, the following are the summary of findings;
Findings reveal that conditions of buildings in the study area is relatively fair, major sources of water by residents include pipe-borne water, borehole and well. Meanwhile, based on respondents’ assessment, the contribution of public and private sector in housing supply is said to be commendable.
It also reveal that acute shortage, unsanitary conditions and exorbitant rent are prevailing housing problems in Nigeria.
Findings also reveal that affordability in housing remains an issue to be considered in housing supply and demand in Nigeria.
RECOMMENDATIONS
Based on the findings of this study, the following recommendations are suggested:
- The Town Planning Department of the Ministry of Lands and Housing should be empowered to prepare layouts which must be sub-divided into plots for allocation to those who have demand for them. Such plots must be very highly subsidized to enable individuals afford to purchase and develop them into housing units. This will encourage builders to participate fully in the supply of housing in Abeokuta.
- Delays in the approval of plans should be checked.
- Government should provide an effective housing scheme that can accommodate migrants, civil servants and pensioners as this would help alleviate the sufferings of the people.
- Since housing is capital intensive, government should provide special allocation or increase budgetary allocation to the housing sector.
- Organizations like Banks and Insurance Companies should participate fully in the provision of houses in Abeokuta by making loans accessible to prospective individual suppliers of housing units in Abeokuta.
CONCLUSION
Private sector housing in Abeokuta reflects the general private sector housing characteristics in developing countries. Housing in the developing countries is basically private sector driven. This is a new paradigm shift of involving the private sector in housing delivery as a result of the numerous and monumental problems that bedevil the public sector. Generally, housing supply in developing countries does not match the need/demand for it. To arrest this situation, the various governments in the developing countries have a role to play. They must provide the enabling environment to enable the private sector housing suppliers play their leading role in the supply of housing. It is only when that is achieved that we can be confident in getting enough supply of housing units in the country.
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