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AN ASSESSMENT OF HOUSING DEMAND AND SUPPLY

CHAPTER ONE

INTRODUCTION

1.1   Background to 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.

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 time to construct and cannot easily be made ready for consumption if there are changes in demand. There is need for proper understanding of the nature and complexity of housing production for the purpose of solving these problems. In these places, housing prices can often be lower than the cost of new construction, because of the abundant supply. Many attempts have being made both by individual and government through various programs in solving housing problem in Nigerian urban centres.

Anyigba has gradually emerged as the social and commercial headquarters of the eastern senatorial district of kogi state which is the homeland of the igalas (mainly) and the bassas. The town has earned this status through a combination of vantage central location within the senatorial district and socio-economic activities in 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. The population of Anyigba has increased to 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 1974-2005. As a result of the establishment of the university (mainly) and because people have migrated to Anyigba to benefit of it’s commercial, administrative, economic functions etc.

The establishment of the university has encouraged migration of people to Anyigba Town. Many people have migrated from different parts of the state (kogi) 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 functional 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, these is a need for their commercial needs to be met. These people need markets from within Anyigba where they could purchase their needs. Anyigba hitherto does not provide a satisfactory commercial function; people have to travel most times, long distances before they could purchase some items for themselves. This ought not to be so; people need markets from within Anyigba rather than travelling to far places for their commercial activities. For example, one would have to travel to a place like lokoja before you can get items like cartographic pens or even textbooks. Although Anyigba serves as a market (central place) in the region, it does not adequately 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. It is usually a situation of 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 in the world today is that of provision of shelter. It is on this backdrop that the researcher intends to investigate the short fall in housing supply

1.3   Objectives of study

The main aim of the study is assessment of housing demand and supply in Anyigba. 

(i) To ascertain the commercial nature of Anyigba and the commercial land use of the town.

(ii) To ascertain ways of improving the commercial infrastructure of housing in Anyigba.

(iii) To examine the historical basis of the commercial nature of housing Anyigba.

(iv) To ascertain the relationship between housing demand and supply in Anyingba

1.4   Research question

(1) What is the commercial nature of housing in Anyigba?

(2) is 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 study will be of importance to academia, students, teachers and the general public who are also a benefactor of housing in the community.

1.6      Scope and limitations of the study

The scope of the study covers assessment of housing demand and supply in Anyigba community in Kogi State. However, the study has some constrained and limitations which are:

(a)  Availability of research material:- The research material available to the researcher is insufficient, thereby limiting the study      

(b)  Time:- The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

(c)  Finance:- The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

1.7     Definition of terms

Housing: A residence such as a house, apartment, mobile home, or room(s) within a larger structure that provides a space for occupants making up a single household to live and eat.

Demand: Demand is an economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service.

Supply: Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers.