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, and this no doubt has a very crucial impact on his health, welfare, and productivity. Among these basic needs, the other two are clothing and food.
Housing should not be regarded as merely providing simple shelter but in terms of lifestyle, including economic, social, and educational needs that should be capable of meeting the needs and aspirations of the residents, contributing toward the physical, mental, and social wellbeing of people, and providing maximum quiet environment, living and outdoor space, privacy, cleanliness, safety, and aesthetic satisfaction.
Housing demand may be defined as a housing consumer’s willingness and ability to pay for a particular dwelling, based on the income of such a consumer, house type, location preferences, and local prices.
Demand may be defined as the quantity of any good or service that consumers are willing and able to buy at a given price in a 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 amount of the new supply depends upon the cost of these inputs, the price of the existing stock of houses, and the production technology.
The rate of urbanization in Nigeria is increasing at a very fast rate, especially during the oil boom period that has consequently led to an unprecedented increase in population and resulting in high demand in housing. The government and individuals are concerned with the provision of quantitative and qualitative housing to match the demand by the ever–increasing population in Nigerian urban cities. Albeit, the efforts of the government at all levels, be it federal, state, or local and individuals in making provision for an adequate housing unit for Nigeria‘s populace have not yielded fruit. 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 the problems of inadequacy of the building materials, indigenous landowners, inaccessibility to funds, exchange rate and so on.
Housing demand in an urban centre is the 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 has brought about a housing shortage, and most people are also found living in indecent building apartments because of their socio-economic background which cannot cope with an ever increasing price of decent houses.
It’s believed that housing supply in some cities is inelastic—either by little or no open land available, or restriction of local regulations on development that makes it so slow and also prohibitively expensive.
The cost of materials for building, unbearable conditions for obtaining a loan from the mortgage banks, and government policies have been factors militating against the efforts of public and private developers in bridging the gap in housing supply and demand.
Also, another factor that affects the supply of housing in order to meet the demand is the time of housing process. One of the major problems that contribute to the shortage of housing supply is the complexity and time duration in housing supply to different socio-economic status of housing consumer.
The time of housing process would not allow the housing supply to meet the housing demand as a result of increase in urban population compared with the time period it would take for housing delivery to be taken place into the housing market for the consumption. Housing takes long to put up and therefore not readily available for consumption in case of fluctuations in demand.
There is a need for an appropriate understanding of the nature and complexity of housing production for the purpose of solving these problems. This situation often results in a fall in housing prices below the cost of new construction in these places. Various efforts have been made at individual levels and through government programs toward solving the housing problem in the Nigerian urban centers.
Anyigba has slowly but surely become the social and commercial hub of the eastern senatorial district of Kogi State, which is the ancestral home of the Igalas (mostly) and the Bassas.
The town has attained this status by a combination of vantage central location within the senatorial district and socio-economic activities in the more recent years away from the cultural influence of Idah, the seat of traditional leadership of the Igalas (Attah of Igala).
The status of Anyigba town was further boosted in year 2000 with the establishment of a university i.e. (kogi state university) within the town, this in turn has affected the type of land use in the area under study.
As at the year 2001, the major land use in Anyigba was mainly residential (63.28% of the total land area) inclusive of the residential quarters in the university.
It has grown from a mere population of about 40,764 as at the year 2001 contrary to the estimated population figure of the town by the Town Planning Development Board in their Master Plan for Anyigba from the year 1974-2005.
This is mainly a result of the establishment of the university and because people have migrated to Anyigba for its commercial, administrative, and economic functions, etc.
The university has encouraged people to move to Anyigba Town. This has resulted in the migration of people from different parts of the state, especially students, and from all over the country. Some of these people have come from as far as Kaduna, Maiduguri, Lagos, Gombe, etc. to benefit from the educational function of Anyigba.
This coupled with the migration of people for some other purposes residential in cases of retirement etc. has led to a dramatic increase in the population of Anyigba Town. It is worthy of note that as these people come to Anyigba from their different places and for different purposes, there is a need for their commercial needs to be met.
These individuals require markets within Anyigba from which they can buy their needs. Anyigba hitherto does not offer a satisfactory commercial function; individuals have to go most of the time, miles away before they could buy some items for themselves.
This should not be the case as the people need markets from within Anyigba rather than going to distant places for their commercial activities.
For instance, one would have to make a journey to a place like Lokoja before you can get items like cartographic pens or even textbooks. Though Anyigba serves as a market (central place) in the region, it does not satisfy the commercial needs of its inhabitants mainly because the kind of goods purchased by the nearby villages are somehow different from those purchased by inhabitants.
Examples of such goods are palm oil, fruits etc. for the region for the inhabitants, goods like materials, books and goods for everyday use are needed. But for the inhabitants, it does not adequately and satisfactorily provide its commercial functions in terms of availability and quality.
1.2 Statement of the problem
Housing has been a concern of individual, families, group and government since the dawn of urban civilization. This problem has often been associated to land acquisition problem, low income of the individual, high cost of building materials, statutory regulation, non use of local building materials etc.
This is mostly a situation where 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 facing the world today is that of providing shelter.
It is against this backdrop that the researcher wishes to study the shortfall in housing supply.
1.3 Aims of research
The general objective of the study is an assessment of housing demand and supply in Anyigba.
(i) To establish the commercial nature of Anyigba and the commercial land use of the town.
(ii) To determine how the commercial infrastructure of housing in Anyigba can be developed.
(iii) To examine the historical basis of the commercial nature of housing Anyigba.
(iv) To ascertain the relationship that exists between housing demand and supply in Anyingba
1.4 Research Question
(1) What is the commercial nature of housing in Anyigba?
(2) are there any ways of improving the commercial structure of housing in Anyigba?
(3) is there any relationship between the commercial nature of Anyigba and provision of accommodation?
(4) What are the ways of meeting demand and supply of housing in Anyigba?
1.5 Significance of the study
It is believed that at the completion of the studies, the findings will be useful to the federal ministry of housing and town planning in their quest to provide affordable accommodation to its citizens.
The study will also be of great importance to the private investors in the housing industries as the study will be a pathfinder to them to ascertain the areas of housing demand in the country. The study will also be of great importance to researchers who intend to embark on research on similar topic as it will serve as a reference point.
Finally, the research will also be important to academia, students, teachers, and the general public who are also beneficiaries of housing in the community.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
The scope of the study covers the assessment of housing demand and supply in Anyigba community of Kogi State.
However, there are some limitations in the study, including:
a) Availability of research material:-
The research material available to the researcher is insufficient, thereby limiting the study
(b) Time:-
The time given for the study does not help in more excellent coverage in that the researcher must juggle other scholastic activities and tests with the study.
(c) Finance:-
The finance available for the research work does not allow wider coverage since resources are very limited, as the researcher has other academic bills to cover.
1.7 Definition of terms:
Housing A unit of housing, such as a house, apartment, mobile home, or room(s) in a larger structure, that serves as a place where occupants who form a single household reside
Need Demand is a principle in economics that describes the desire of a consumer to pay a price for a given good or service.
Supply Supply, in its most basic terms, can be defined as the amount of any particular good or service provided to a customer or consumer.
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