ASSESSMENT OF HOUSING DEMAND AND SUPPLY
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ASSESSMENT OF HOUSING DEMAND AND SUPPLY
CHAPTER ONE
INTRODUCTION
1.1 Background of the study Housing is one of the basic needs of man, which definitely influences the health, welfare, and productivity of a person in huge proportions. 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.
Demand for housing may be defined as the willingness and ability of a housing consumer to pay for a particular dwelling, based on the consumer’s income, type of house, location choice, and local prices.
Demand refers to the amount of any good or service that consumers are willing and able to buy at a given price in any given period of time.
Demand for housing at certain price refers to the value that is place upon 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 amount of the new supply is determined by the price of these inputs, the price of the existing stock of houses and the technology of production.
The rate of urbanization in Nigeria is massively on the rise, especially during the oil boom period, which has led to an unprecedented increase in population and a correspondingly high demand for housing.
Provisions of both quantitative and qualitative housing to meet the demand of the ever-increasing population in Nigerian urban cities have become a concern both for the government and individuals.
Albeit, the provision efforts by the governments at all levels—federal, state, and local—and individuals have not yielded fruit in respect of an adequate housing unit for Nigeria’s populace.
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, are problems of inadequacy of the building materials, indigenous landowners, inaccessibility to funds, exchange rate and so on.
Demand for housing in an 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 on the high rise. Various reasons have been attributed to increasing taste for urban living, and these reasons include employment opportunity, urban amenities, and utilities consumption opportunities.
This has brought about housing shortage and most of the people are found living in indecent building apartments due to their socio-economic background which cannot cope with an ever increasing price of decent houses.
Some cities have an inelastic supply of housing, either through little or no open land or restriction of local regulations on development, which makes it prohibitively expensive or slow.
The high cost of materials in building, unbearable conditions for getting a 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.
This would not allow the housing supply to meet housing demand as a result of an increase in urban population compared with the time period it would take for housing delivery to be taken place into the housing market for consumption. House construction takes a considerable time and hence can’t be channeled into consumption, in case changes in demand occur.
Proper understanding of nature and complexity of housing production is necessary as a means to solve these problems. House prices can often be lower than the cost of new construction in these places, given the abundant supply.
Solving housing problems in Nigerian urban centers has received many attempts by individuals and the government through various programs.
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