Housing Affordability In Ikorodu Local Government Area, Lagos State, Nigeria

Abstract

Housing provision and affordability are among the critical challenges in the housing sector in Nigeria, others being housing finance and land accessibility. Consequent upon the increasing housing challenges in Nigerian urban centres, this study examined the level of housing affordability among households in Ikorodu Local Government Area, Lagos State, Nigeria with a view to providing information that will enhance housing supply and increase housing affordability in the study area. Primary and secondary data were sourced and utilized in this study. Sampling was done using multi-staged and random sampling techniques. Two hundred and fifty-five (255) sets of questionnaires were administered on the residents of the study area. Data collected were analysed using both descriptive and inferential statistics such as frequency table, relative importance index and factor analysis. Applying the 30% income – to - rent housing affordability measure, about 59.7% spend more than 30% of their income on rent, thus facing housing affordability challenges in the area. This study found that cost of routine household maintenance, proximity to transport route, and non-housing related expenses borne by households were the factors influencing housing affordability challenges in the study area. The study concluded that there is high level of housing affordability challenges in Ikorodu Local Government Area of Lagos State, Nigeria across the low, medium, and high rental value properties. This implies that a vast majority of households in Ikorodu lack economic resources for other family necessities after spending over 30% of their income on house rent. Hence the study recommended on the one hand that real estate developers should explore the profitable opportunities for real estate investment in Ikorodu for improvement in Ikorodu landscape with better housing designs, and consequently promote the state gross domestic product (GDP) and by extension the national GDP too. While on the other hand, the government is encouraged to intervene in housing delivery in Ikorodu in order to mitigate housing affordability challenges by increasing housing supply and pushing down house rent in Ikorodu.