Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja

Abdulrahman Siyaka Arudi; Manga Mustapha Kyari; Abdulkadir Aliyu

doi:doi:10.11648/j.ijema.20221003.14

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Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja

Abdulrahman Siyaka Arudi, Manga Mustapha Kyari, Abdulkadir Aliyu

Published in International Journal of Environmental Monitoring and Analysis (Volume 10, Issue 3)

Received: 3 May 2022 Accepted: 24 May 2022 Published: 14 June 2022

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Abstract

This study aims to measure the affordability of houses provided by the organised housing developers in the FCT, Abuja, to know if it is affordable for low-income earners by taking into consideration certain variables that may have an effect on the affordability, which range from "household income, household expenditure, occupation, educational qualification, number of households with children, number of household heads working, and monthly house installment. The study uses quantitative research approaches. The study employed both primary and secondary data with the aid of questionnaires. A total of 330 low-income earners were selected in the FCT based on the proportion of the estimated household population using a systematic sampling technique. The information gathered was analysed using descriptive statistics, frequencies, percentages, and binary logistic regression analysis. The findings revealed that 60.6% of the respondents among the low income earners earned somewhere between the range of ₦61,000 and ₦ 90,000. The finding of the level of affordability revealed that only 30.4% of the sampled respondents could afford the housing provided, compared to 69.6% who were not capable of affording it. The result revealed that among all the variables considered, the only educational qualification variable that has no effect on affordability among the low income earners in the FCT, Abuja. Therefore, the analysis has shown the loopholes in the current housing policy where the major target is to provide houses that are more affordable for every class of citizen, with a focus on low-income earners. In view of the findings and conclusions of this study, the following recommendations were made: The government needs a total overhaul of the current housing policy in order to create an enabling environment where the cost of housing can be reduced and income generation can be equally increased, so that low-income earners can conveniently afford the houses provided within the FCT, Abuja and other parts of the country at large.

Published in	International Journal of Environmental Monitoring and Analysis (Volume 10, Issue 3)
DOI	10.11648/j.ijema.20221003.14
Page(s)	79-84
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Affordability, Housing, Residual Income, Development

References

[1]	Adegoke, S. A. O. (2016). Housing Affordability in Nigeria: A Study of the Organized Private Sector Housing. Unpublished PhD Thesis, Ibadan: Department of Urban and Regional Planning, Faculty of the Social Sciences, University of Ibadan.
[2]	Bramley, G. (2012). Affordability, poverty and housing need: Triangulating measures and standards. Journal of Housing and the Built Environment, 27 (2), 133–151.
[3]	Corrigan, E., Foley, D., McQuinn, K., O’ Toole, C., SlayMaker, R. (2019). Exploring affordability in the Irish housing market. The Economic and Social Review, 50 (1), 119–157.
[4]	FCTA. (2008). Report of the Committee on the Review of Mass Housing Scheme in the Federal Capital Territory (FCT). Abuja: FCTA.
[5]	FRN (2009). Guidelines for Housing Development in the Federal capital Territory (FCT), Abuja. FCTA, Abuja.
[6]	Gopalan, K., Venkataraman, M. (2015). Affordable housing: Policy and practice in India. IIMB Management Review, 27, 129–140.
[7]	Herbert, C., Hermann, A., McCue, D. (2018). Measuring housing affordability: Assessing the 30 percent of income standard [Conference session]. Housing Affordability, Joint Centre for Housing Studies of Harvard University, USA.
[8]	Karley, N. K., 2008, Ghana residential property delivery constraints and affordability analysis. Housing Finance International, Vol. XXII No. 4, June 2008, pp. 22-28.
[9]	Lawal, A. O., Adekunle, I. A (2018) Access to land and the delivery of affordable housing in Nigeria: an assessment of the federal housing authority (FHA) in Abuja, 1991 to 2013, SAGE Open 8 (2) (2018), doi: 10.1177/2158244018777281.
[10]	Mulliner, E., Malys, N. Maliene, V. (2016), Comparative analysis of MCDM methods for the assessment of sustainable housing affordability, Omega 59 (2016) 146–156 http://doi.org/10.1016/j.omega.2015.05.013
[11]	Noranmawati, M. S. (2013). Residual income measure of housing affordability. International Journal of Advances in Engineering & Technology, Vol. 5, Issue 2, pp. 1-8.
[12]	Oyo-Ita (2017). Tackling the Housing Affordability Challenge: Nigeria Experience. In 30th International Union of Housing Finance (IUHF) World Congress on “Global Opportunities in Housing Finance” (pp. 1-20). [Paper reference 1].
[13]	Sendi, R. (2014). Housing accessibility versus housing affordability: Introducing universal housing care. Sociology and Space, 52 (3), 239–260.
[14]	Stone, M. E., Burke, T., Ralston, L. (2011). The residual income approach to housing affordability: The theory and the practice (AHURI Position Paper No. 139).
[15]	Ukoje, J. E., & Kanu, K. U. (2014). Implementation of the Challenges of the Mass Housing Scheme in Abuja, Nigeria. American International Journal of Contemporary Research, 4 (4), 209-218.
[16]	Yang, Z., & Chen, J. (2014). Housing Affordability and Housing Policy in Urban China. Berlin: Springer. https://doi.org/10.1007/978-3-642-54044-8

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Abdulrahman Siyaka Arudi, Manga Mustapha Kyari, Abdulkadir Aliyu. (2022). Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. International Journal of Environmental Monitoring and Analysis, 10(3), 79-84. https://doi.org/10.11648/j.ijema.20221003.14

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ACS Style

Abdulrahman Siyaka Arudi; Manga Mustapha Kyari; Abdulkadir Aliyu. Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. Int. J. Environ. Monit. Anal. 2022, 10(3), 79-84. doi: 10.11648/j.ijema.20221003.14

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AMA Style

Abdulrahman Siyaka Arudi, Manga Mustapha Kyari, Abdulkadir Aliyu. Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. Int J Environ Monit Anal. 2022;10(3):79-84. doi: 10.11648/j.ijema.20221003.14

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@article{10.11648/j.ijema.20221003.14,
  author = {Abdulrahman Siyaka Arudi and Manga Mustapha Kyari and Abdulkadir Aliyu},
  title = {Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja},
  journal = {International Journal of Environmental Monitoring and Analysis},
  volume = {10},
  number = {3},
  pages = {79-84},
  doi = {10.11648/j.ijema.20221003.14},
  url = {https://doi.org/10.11648/j.ijema.20221003.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijema.20221003.14},
  abstract = {This study aims to measure the affordability of houses provided by the organised housing developers in the FCT, Abuja, to know if it is affordable for low-income earners by taking into consideration certain variables that may have an effect on the affordability, which range from "household income, household expenditure, occupation, educational qualification, number of households with children, number of household heads working, and monthly house installment. The study uses quantitative research approaches. The study employed both primary and secondary data with the aid of questionnaires. A total of 330 low-income earners were selected in the FCT based on the proportion of the estimated household population using a systematic sampling technique. The information gathered was analysed using descriptive statistics, frequencies, percentages, and binary logistic regression analysis. The findings revealed that 60.6% of the respondents among the low income earners earned somewhere between the range of ₦61,000 and ₦ 90,000. The finding of the level of affordability revealed that only 30.4% of the sampled respondents could afford the housing provided, compared to 69.6% who were not capable of affording it. The result revealed that among all the variables considered, the only educational qualification variable that has no effect on affordability among the low income earners in the FCT, Abuja. Therefore, the analysis has shown the loopholes in the current housing policy where the major target is to provide houses that are more affordable for every class of citizen, with a focus on low-income earners. In view of the findings and conclusions of this study, the following recommendations were made: The government needs a total overhaul of the current housing policy in order to create an enabling environment where the cost of housing can be reduced and income generation can be equally increased, so that low-income earners can conveniently afford the houses provided within the FCT, Abuja and other parts of the country at large.},
 year = {2022}
}

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TY  - JOUR
T1  - Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja
AU  - Abdulrahman Siyaka Arudi
AU  - Manga Mustapha Kyari
AU  - Abdulkadir Aliyu
Y1  - 2022/06/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijema.20221003.14
DO  - 10.11648/j.ijema.20221003.14
T2  - International Journal of Environmental Monitoring and Analysis
JF  - International Journal of Environmental Monitoring and Analysis
JO  - International Journal of Environmental Monitoring and Analysis
SP  - 79
EP  - 84
PB  - Science Publishing Group
SN  - 2328-7667
UR  - https://doi.org/10.11648/j.ijema.20221003.14
AB  - This study aims to measure the affordability of houses provided by the organised housing developers in the FCT, Abuja, to know if it is affordable for low-income earners by taking into consideration certain variables that may have an effect on the affordability, which range from "household income, household expenditure, occupation, educational qualification, number of households with children, number of household heads working, and monthly house installment. The study uses quantitative research approaches. The study employed both primary and secondary data with the aid of questionnaires. A total of 330 low-income earners were selected in the FCT based on the proportion of the estimated household population using a systematic sampling technique. The information gathered was analysed using descriptive statistics, frequencies, percentages, and binary logistic regression analysis. The findings revealed that 60.6% of the respondents among the low income earners earned somewhere between the range of ₦61,000 and ₦ 90,000. The finding of the level of affordability revealed that only 30.4% of the sampled respondents could afford the housing provided, compared to 69.6% who were not capable of affording it. The result revealed that among all the variables considered, the only educational qualification variable that has no effect on affordability among the low income earners in the FCT, Abuja. Therefore, the analysis has shown the loopholes in the current housing policy where the major target is to provide houses that are more affordable for every class of citizen, with a focus on low-income earners. In view of the findings and conclusions of this study, the following recommendations were made: The government needs a total overhaul of the current housing policy in order to create an enabling environment where the cost of housing can be reduced and income generation can be equally increased, so that low-income earners can conveniently afford the houses provided within the FCT, Abuja and other parts of the country at large.
VL  - 10
IS  - 3
ER  -

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Author Information

Abdulrahman Siyaka Arudi

Department of Urban & Regional Planning, Faculty of Environmental, Abubakar Tafawa Balewa University, Bauchi, Nigeria
Manga Mustapha Kyari

School of Architecture, Planning and Landscape, Newcastle University, London, United Kingdom
Abdulkadir Aliyu

Department of Urban & Regional Planning, Faculty of Environmental, Abubakar Tafawa Balewa University, Bauchi, Nigeria

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Abdulrahman Siyaka Arudi, Manga Mustapha Kyari, Abdulkadir Aliyu. (2022). Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. International Journal of Environmental Monitoring and Analysis, 10(3), 79-84. https://doi.org/10.11648/j.ijema.20221003.14

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ACS Style

Abdulrahman Siyaka Arudi; Manga Mustapha Kyari; Abdulkadir Aliyu. Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. Int. J. Environ. Monit. Anal. 2022, 10(3), 79-84. doi: 10.11648/j.ijema.20221003.14

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AMA Style

Abdulrahman Siyaka Arudi, Manga Mustapha Kyari, Abdulkadir Aliyu. Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja. Int J Environ Monit Anal. 2022;10(3):79-84. doi: 10.11648/j.ijema.20221003.14

Copy | Download

@article{10.11648/j.ijema.20221003.14,
  author = {Abdulrahman Siyaka Arudi and Manga Mustapha Kyari and Abdulkadir Aliyu},
  title = {Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja},
  journal = {International Journal of Environmental Monitoring and Analysis},
  volume = {10},
  number = {3},
  pages = {79-84},
  doi = {10.11648/j.ijema.20221003.14},
  url = {https://doi.org/10.11648/j.ijema.20221003.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijema.20221003.14},
  abstract = {This study aims to measure the affordability of houses provided by the organised housing developers in the FCT, Abuja, to know if it is affordable for low-income earners by taking into consideration certain variables that may have an effect on the affordability, which range from "household income, household expenditure, occupation, educational qualification, number of households with children, number of household heads working, and monthly house installment. The study uses quantitative research approaches. The study employed both primary and secondary data with the aid of questionnaires. A total of 330 low-income earners were selected in the FCT based on the proportion of the estimated household population using a systematic sampling technique. The information gathered was analysed using descriptive statistics, frequencies, percentages, and binary logistic regression analysis. The findings revealed that 60.6% of the respondents among the low income earners earned somewhere between the range of ₦61,000 and ₦ 90,000. The finding of the level of affordability revealed that only 30.4% of the sampled respondents could afford the housing provided, compared to 69.6% who were not capable of affording it. The result revealed that among all the variables considered, the only educational qualification variable that has no effect on affordability among the low income earners in the FCT, Abuja. Therefore, the analysis has shown the loopholes in the current housing policy where the major target is to provide houses that are more affordable for every class of citizen, with a focus on low-income earners. In view of the findings and conclusions of this study, the following recommendations were made: The government needs a total overhaul of the current housing policy in order to create an enabling environment where the cost of housing can be reduced and income generation can be equally increased, so that low-income earners can conveniently afford the houses provided within the FCT, Abuja and other parts of the country at large.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Measuring Housing Affordability Through Residual Income Approach as a Parameter in Some Selected Houses Developed Within FCT, Abuja
AU  - Abdulrahman Siyaka Arudi
AU  - Manga Mustapha Kyari
AU  - Abdulkadir Aliyu
Y1  - 2022/06/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijema.20221003.14
DO  - 10.11648/j.ijema.20221003.14
T2  - International Journal of Environmental Monitoring and Analysis
JF  - International Journal of Environmental Monitoring and Analysis
JO  - International Journal of Environmental Monitoring and Analysis
SP  - 79
EP  - 84
PB  - Science Publishing Group
SN  - 2328-7667
UR  - https://doi.org/10.11648/j.ijema.20221003.14
AB  - This study aims to measure the affordability of houses provided by the organised housing developers in the FCT, Abuja, to know if it is affordable for low-income earners by taking into consideration certain variables that may have an effect on the affordability, which range from "household income, household expenditure, occupation, educational qualification, number of households with children, number of household heads working, and monthly house installment. The study uses quantitative research approaches. The study employed both primary and secondary data with the aid of questionnaires. A total of 330 low-income earners were selected in the FCT based on the proportion of the estimated household population using a systematic sampling technique. The information gathered was analysed using descriptive statistics, frequencies, percentages, and binary logistic regression analysis. The findings revealed that 60.6% of the respondents among the low income earners earned somewhere between the range of ₦61,000 and ₦ 90,000. The finding of the level of affordability revealed that only 30.4% of the sampled respondents could afford the housing provided, compared to 69.6% who were not capable of affording it. The result revealed that among all the variables considered, the only educational qualification variable that has no effect on affordability among the low income earners in the FCT, Abuja. Therefore, the analysis has shown the loopholes in the current housing policy where the major target is to provide houses that are more affordable for every class of citizen, with a focus on low-income earners. In view of the findings and conclusions of this study, the following recommendations were made: The government needs a total overhaul of the current housing policy in order to create an enabling environment where the cost of housing can be reduced and income generation can be equally increased, so that low-income earners can conveniently afford the houses provided within the FCT, Abuja and other parts of the country at large.
VL  - 10
IS  - 3
ER  -

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