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An Assessment Of Housing Demand And Supply
CHAPTER ONE -- [Total Page(s) 3]
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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Housing is one of the basic necessities of man and has no doubt a profound impact on the health, welfare and productivity of the individual others are clothing and food. Housing must not be considered purely as shelter but against lifestyle which encompasses with economic, social and educational needs which must be able to meet the need and aspiration of the residents as well as contribute to the physical, mental, social wellbeing of the people and provide maximum quiet environment, living and outdoor space, privacy, cleanliness, safety and aesthetic satisfaction.
Housing demand can be explained as the willingness and ability of housing consumer to pay for a particular dwelling depending upon such consumer’s income, house type, location preferences and local prices.
Demand is the quantity of good or service that consumers are willing and able to buy at a given price at a particular given time period. Demand for housing at certain price refers to the value that is placed on a house linked with the satisfaction derived in such house. In economics, this is termed as utility. Housing supply on the other hand is produced using land, labour and various inputs such as electricity and building materials. The quantity of the new supply is determined by the cost of these inputs, the price of the existing stock of houses and the technology of production.
The rate of urbanisation in Nigeria is remarkably increasing, especially during the oil boom period which has consequently led to an unprecedented increase in population and resulting in high demand in housing.
Both government and individuals are being so concerned in the provision of both quantitative and qualitative housing to meet the demand of the ever increasing population in Nigerian urban cities. Albeit, the efforts of the government at all levels (federal, state and local) and individuals in making provision for an adequate housing unit for Nigeria populace has not yielded fruit.
The problems of inadequacy of the building materials, indigenous landowners, inaccessibility to funds, exchange rate and so on, are the major constraints that led to price increases of the housing construction which has consequently made it impossible for people of low income or middle income to acquire their personal house.
Housing demand in urban centre is a manifestation and reflection of different household desires to live in an urban centre, the desire of people to live in an urban centre especially in Anyigba is increasing at an alarming rate. Various reasons have been attributed to an increasing taste for urban living and these reasons include employment opportunity, urban amenities and utilities consumption opportunities. This situation has consequently led to housing shortage and most people are also found living in indecent building apartments due to their socio-economic background which cannot cope with an ever increasing price of decent houses.
Housing is in inelastic supply in some cities either through little or no open land, restriction of local regulations on development that make it prohibitively expensive or slow. The materials cost of building, unbearable conditions on getting loan from the mortgage banks and government policies have been factors militating against the achievement of the effort of public developers and private developers, that is the government and individuals in bridging the gap in housing supply and demand.
Also, the time of housing process is another factor that affects the supply of housing to meet the demand. The complexity and time duration in housing supply is one of the major problems which contribute to the shortage of housing supply to different socio-economic status of housing consumer.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
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