Factors influencing homeownership amongst civil servants in Ibadan metropolis
©2016
Textbook
76 Pages
Summary
This study examines factors influencing homeownership amongst civil servants in Ibadan metropolis, Oyo State, Nigeria. For this purpose, it identifies the socio-economic characteristics of civil servants in Ibadan, investigates their housing preferences and identifies and examines factors affecting homeownership amongst them. This happens with a view to promote homeownership. The study uses self-administered questionnaires to obtain relevant data. A total number of 113 participants were used. This was generated by taking 15% of the staff capacity of each of the reviewed ministries in the Oyo State government secretariat, Ibadan, Oyo State. Out of this number, 95 valid participants were retrieved and used for the analysis, indicating a response rate of 84.07%. Data were analysed with the use of frequencies, percentages and weighted mean analysis.
Excerpt
Table Of Contents
ABSTRACT
This study examined factors influencing homeownership amongst civil servants in Ibadan
metropolis, Oyo State, Nigeria. It identified the socio-economic characteristics of civil
servants in Ibadan. It also investigates the housing preferences of civil servants in the study
area and identified and examined factors affecting homeownership amongst civil servants in
the study area. This is with a view to promoting homeownership.
The study employed the use of self-administered questionnaires to obtain relevant data. A
total number 113 questionnaires was used and it was arrived at by taking 15% of the staff
capacity of each of the sampled ministries in the Oyo State government secretariat , Ibadan,
Oyo State, Out of this number, ninety-five (95) valid questionnaires were retrieved and used
for the analysis, indicating a response rate of (84.07%). Data were analysed with the use of
frequencies, percentages and weighted mean analysis.
The study revealed that the majority of the respondents were from the ministry of youths and
sport, those within the years range of 11-15 years in service are were more than others and it
also indicate that the frequency of junior civil servants are more than that of the senior staffs,
while those with the age range of 31-40 years are more than other age bracket that was used
in this research work and it also shows that there are more female civil servants with a
frequency of 54 to 41 of male civil servants, while 74.7% of the civil were married, Most of
their academic qualifications were ND (National Diploma), the family size with the most
frequency was a family size of 3-4.
The study revealed that the housing of preferences of civil servants in the study was ranked
the hierarchical order as follows, Duplex, Condominium, Flat house, Detached house,
Bungalow, Semi-detached, Terrace house, Tenement house, Row house while the factors
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influencing homeownership were ranked in the order below, Costs of building materials,
Land acquisition, Personal priority, Salary, Marital status, Loan facilities, Land security,
Lending rate, Tribe, Parental home ownership, Gender, Age, Education.
This work recommends that in other to improve and increase homeowners amongst civil
servants, government should implement a policy that will make cost of building materials
affordable (rebate for importers of building materials), ensure that civil servants salaries are
upwardly reviewed as at when and paid promptly, should ensure the mortgage institutions in
the country are citizens-friendly, efficient and effective, government should also implement a
policy that will make land affordable and secured, and provision of housing loans at a
relatively low lending rate should be implemented. These will really help increase number of
homeowners the study area.
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TABLE OF CONTENTS
Dedication
... 1
Acknowledgement
... 2
Abstract
... 4
Table of contents
... 6
Table contents for frequency tables
... 8
CHAPTER ONE
GENERAL INTRODUCTION ... 9
1.1 Background to the study ... 9
1.2 Statement of the problem ... 10
1.3 Aim and objectives ... 12
1.4 Justification of the study ... 12
1.5 Scope of study ... 13
1.6 Study area ... 14
CHAPTER TWO
LITERATURE REVIEW ... 15
2.1 Housing ... 15
2.2 Housing and housing problems ... 16
2.3 Factors determining home ownership... 19
2.4 Homeownership ...24
CHAPTER THREE
RESEARCH METHODOLOGY ... 35
3.1 Introduction ... 35
3.2 Research design ... 35
3.3 Study population ... 35
3.4 Sample frame ... 36
3.5 Sample size ... 36
3.6 Method of sampling ... 36
3.7 Instruments of data collection ... 37
3.8 Questionnaire design ... 37
3.9 Data analysis and presentation ... 39
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CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF FINDINGS ... 40
4.1 Introduction ... 40
4.2 Socio-Economic Characteristics of Respondents ... 41
4.3 Housing preferences of the civil servants. ... 47
4.4 Factors influencing homeownership in the study area. ... 54
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION ... 63
5.1 Summary of Findings ... 63
5.2 Recommendations ... 65
5.3 Conclusion ... 65
REFERENCES ... 66
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TABLE OF CONTENTS FOR FREQUENCY TABLES
Table 1. Distribution of Respondents of Ministries ...41
Table 2. Distribution of civil servants according to Number of years in service ...42
Table 3. Distribution of Respondents according to the status of civil servants ...43
Table 4. Distribution of Respondents according to the age range of civil servants ...43
Table 5. Distribution of Respondents according to the gender of civil servants ...44
Table 6. Distribution of Respondents marital status ...45
Table 7. Distribution of Respondents academic qualification ...45
Table 8. Distribution of Respondents salary range ...46
Table 9. Distribution of Respondents according to the Family size ...47
Table 10. Respondents Preferences Index for the ministry of establishment and training ...48
Table 11. Civil servants Preferences Index for the ministry of physical planning and
development unit ...49
Table 12. Civil servants Preferences Index for the ministry of Land, housing and survey ...50
Table 13. Civil servants Preferences Index for the ministry of Local government and
chieftaincy matter ...51
Table 14. Civil servants Preferences Index for the ministry of youths and sport ...52
Table 15. Civil servants Preferences Index for the five (5) ministries ...53
Table 16. Civil servants Importance Index for the ministry of establishment and training ...55
Table 17. Civil servants Importance Index for the ministry of physical planning and
development unit ...56
Table 18. Civil servants Importance Index for the ministry of Land, housing and survey ...57
Table 19. Civil servants Importance Index for the ministry of Local government and
chieftaincy matter ...59
Table 20. Civil servants Importance Index for the ministry of youths and sport ...60
Table 21. Civil servants Importance Index for the five (5) ministries ...61
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CHAPTER ONE
GENERAL INTRODUCTION
1.1 Background to the study
Shelter is one of the basic needs of human, hence more than just a place of habitation but a
personal abode of dwelling (personal home) is a dream of an average aged African and it is
enshrouded in myth about Africans.
Some homes are constructed by the owners with the intent to occupy, many are inherited, and
some are purchased as new homes from real estate developer or an existing home from a
previous landlord or owner-occupier.
Homeownership is synonymous to owner-occupier, it is driven by the desire to improve the
quality of life and as a dream of an average Nigerians, it is premised on the ease-off on rental
prices, peaceful habitation with co-tenants, managing pressures from property managers or
landlords, conveniences in terms of alteration, right to modify and use, and the self-
fulfillment of owning a home.
According to Fetter (2013), Factors influencing homeownerships are many and broad, but the
major influencing factors are; Priority of needs, access to fund, Agboola (1987) in his work
recognised finance as part of home development problems. Availability of land, affordability
of land, security of tenure etc. Other factors have experienced a steady increase in their
impact on home ownership. In a tight money market, homeownership is the first area to
suffer, since neither the builder nor the consumer can readily obtain finance for home
development.
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Homeownerships are increasing in age as well as income levels. This is most likely reflecting
the steep increases in the real cost of "affordable housing." One factor that has remained the
same is the impact of race. `'No matter what the level of progression of minorities in society,
economically many remain below the wealth constraint for home ownership'' (Gyourko and
Linneman, 1996).
1.2 Statement of the problem
According to Agbakoba (2015), Homeownership is a desire of an average Nigerian, and most
people in Nigeria still find home ownership as a major, it is interesting to note that all
governments in Nigeria since Independence have always highlighted homeownership for
citizens as a major priority.
Agbakoba (2015) said, "There is a shortage of housing for low - income earners and
constantly growing housing demands (due to increase in population) that are not met.''
Unfortunately, banks are reluctant to provide mortgage facilities to low - income earners. In
order to solve the home /mortgage challenges described above, the Nigerian Mortgage
Refinance Company (NMRC) was established to promote home ownership and increase the
availability and affordability of mortgage loans to Nigerians.
The problem of land acquisition has also been identified as a major hurdle that an aspiring
home owner has to scale. Because of the cumbersome acquisition process, especially in the
urban centers following the enactment of the land use act in 1978 that vested all the land
within a state in the governor, getting a piece of land for building homes is tortuously
problematic.
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Affordability of land is also one of the encumbrances affecting aspiring home owners, prices
of land especially in cities are astronomically high and this affect the chances of low-income
earners of owning a home.
Lack of Secure Access to Land is also an obstacle and land is a crucial element in the home
owning process and its accessibility is vital to efficient and sustainable housing delivery.
Land accessibility, according to Omirin (2002) entails land tenure security, land affordability,
land availability and the ease with which land is acquired.
Ikejiofor (2005) opines that extensive and intensive literature searches reveal consensus
among analysts that accessibility to land poses the greatest difficulty to urban housing
production in many developing countries. Evidence abound in urbanization studies in
developing countries to buttress the fact that where land has been made available, even the
poor have been able to provide themselves with some form of housing (Cheema, 1987,
Crooke, 1985; Asiama, 1990).
High Cost of Land Registration and Titling and bureaucratic delay is another hindrance for
aspiring homeownership, as seen in the foregoing. The World Bank/International Finance
Corporation (IFC) (2006), indicated that when it comes to property registration and transfer,
Nigeria has the highest cost of 27.1% of the property value when compared to other
developed and developing countries of the world. The report indicated that in Nigeria there
are 21 procedures to be followed and the entire process of transfer also last up to 274 days.
These views still hold sway in most Nigeria States as it takes between 2-5 years to obtain
certificate of occupancy and high cost of land transfer as observed by Obunadike (2003)
"unfortunately, the demand for the services rendered by the lands department cannot be said
to be inelastic. Hence with the recent introduction of astronomical high fees for services
rendered by the lands department in the state.
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After reviewing the existing literatures on homeownership, a gap in literature was discovered
and this study focus on filling the detected gap, which is the factors influencing
homeownership, especially amongst civil servants in the Ibadan metropolis.
1.3 Aim and objectives
The aim of the study is to examine the factors influencing homeownership amongst civil
servants in Ibadan metropolis, Oyo state, with a view to promoting the homeownerships.
The specific objectives are to:
1.
evaluate the socio-economic characteristics of civil servants in Ibadan metropolis,
Oyo State.
2.
examine housing preferences of civil servant in the study area and
3.
identify and examine factors influencing homeowners in the study area.
1.4 Justification of the study
The proposition of this study states that there are some salient factors influencing
homeownership in the study area. This study therefore intends to critically examine these
factors amongst civil servants in Ibadan metropolis.
First, Bana (1991) and Emerole (2002) indicated that inadequate capacity of public housing
agencies to deliver housing was one of the key challenges of public housing in Nigeria.
Several researches has been done on adequacy and factors influencing public housing in
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Nigeria, with only little been done on homeownerships and none been done in the Ibadan
metropolis as regards factors influencing homeownership.
Hood (2002) in his `'the determinants of Homeownership: An application of the human
capital investment theory to the Home ownership decision'' streamlined his work to the
influence of human capital investment theory to homeownership.
He considered factors such as Family income, race, gender, educational attainment, parental
home ownership, age, marital status and family size as factors influencing of home
ownership.
Authors and researchers had written a lot on homeownership in relation to many other factors
without considering influencing factors such as the ease of land acquisition, Affordability of
land, access to financial facilities by aspiring homeowners and the effect of land tenure
insecurity on aspiring homeowner. The aforementioned influencing factors as regards
homeownership is the focus of this research work using Ibadan metropolis, Oyo State,
Nigeria as a case study.
The results of this study will therefore offer insights on the factors influencing
homeownership amongst civil servants in Ibadan metropolis and will contribute hugely to the
existing body of knowledge for residents, stakeholders, the government agencies, and various
sectors in the state and beyond.
1.5 Scope of study
The factors influencing homeownership has received various attentions from different
researchers in different parts of the country and beyond, and it is mainly because owning a
home is a dream of an average Nigerian.
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This research work which will be carried out in Ibadan metropolis, Oyo State and it will
focus on factors affecting homeownership amongst the civil servant in the study area.
1.6 Study area
This research work will be carried out in Ibadan, Oyo state province of the country (Nigeria).
Ibadan is the capital of Oyo State, and the third largest metropolitan area, by population, in
Nigeria, after Lagos and Kano, with a population of over 3 million, and the largest
metropolitan geographical area. At Nigerian independence, Ibadan was the largest and most
populous city in the country and the third in Africa after Cairo and Johannesburg. Ibadan is
located in south-western Nigeria, 128 km inland northeast of Lagos and 530 km southwest of
Abuja, the federal capital, and is a prominent transit point between the coastal region and the
areas to the north. Ibadan had been the centre of administration of the old Western Region
since the days of the British colonial rule, and parts of the city's ancient protective walls still
stand to this day. The principal inhabitants of the city are the Yoruba's.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Housing
According businessdictionary.com (2015), Housing is a building or structure that individuals
and their family may live in that meet certain federal regulations.
According Wikipedia (2015), Housing generally refers to the social problem of ensuring that
members of society have a home in which to live, whether this is a house, or some other kind
of dwelling, lodging, or shelter.
According to inmylanguage.org (2015), the different types of housing available are:
x
Apartment (suite, flat) - Includes 1 bedroom or more, a kitchen, a bathroom and a
living room. A "bachelor" apartment or "studio" is 1 room with a kitchen area and a
bathroom.
Apartments may be in a building or a house. Apartment buildings are high-rise (6-30
storey with an elevator) or low-rise (fewer than 6 storey with no elevator). Apartments
are owned by a landlord and are rented to tenants.
x
Condominium (condo) - A type of home ownership where you buy a unit in an
apartment building or townhouse complex, but do not own the land. Each owner pays
their own mortgage, taxes, utilities and a monthly fee towards property maintenance.
Sometimes, you can rent condos from the owner.
x
Duplex - A house that is divided into 2 separate apartments, one on top of another.
The owner of a duplex may live in one apartment and rent the other, or rent both
apartments to tenants. A "triplex" is a house that is divided into 3 separate apartments.
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x
Detached house - A single house that is owned by 1 or more persons. Owners may
rent 1 or more rooms or the whole house.
x
Semi-detached house - A single house that is joined to another house with a common
wall. The houses are beside each other and attached.
x
Townhouse - A small house that is joined to a row of other small houses.
Townhouses can be bought or rented.
x
Room - A room in an apartment or house that is rented out. If the tenant shares the
kitchen, bathroom and living room with other tenants, this type of housing is called
"shared accommodation." "Room and board" means that meals are included.
2.2 Housing and housing problems
Housing is a crucial basic need of every human being just as food and clothing and it is very
fundamental to the welfare, survival and health of man (Aribigbola, 2006). Hence, housing is
one of the best indicators of a person's standard of living and his place in the society. The
location and type of housing can determine or affect the status of man in the society.
Ajobiewe (2015), noted that shelter is central to the existence of man. He submitted further
that housing involves access to land, shelter and the necessary amenities to make the shelter
functional, convenient, aesthetically pleasing, safe and hygienic. Hence, unsanitary,
unhygienic, unsafe and inadequate housing can affect the security, physical health and
privacy of man. Invariably, the performance of the housing sector is one of the yardsticks by
which the health of a nation is measured (Garriga, 2006).
The World Health Organisation (1961) stated that a good house should have the following
items:
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Good walls and doors to protect against bad weather and to keep out animals.
Sunshades all around the house to protect it from direct sunlight in hot
weather.
Wire nettings at windows and doors to keep out insects like house flies and
mosquitoes.
In essence, housing quality can be judged from the physical appearance of the buildings,
facilities provided, quality of wall used in the building construction, eminence of the roofing
materials, condition of other structural components of the house, and the environmental
condition of the house. Hence, the inadequacy of housing in terms of quality and quantity
results in poor standard of the environment.
Housing problems abound in Nigeria both in rural areas and urban centres. The problem in
the rural areas has to do with qualitative housing while the problem in the urban centre is
quantitative in nature. Housing problems in the rural areas are connected with qualitative
deficiencies like place, degree of goodness and the value of the house.
Wahab (1993) declared that rural housing is incomplete because social services cannot be
adequately linked with them. He submitted further that the social services required with
housing include electricity, water supply, as well as transportation facilities. All these are
deficient in rural housing. On the other hand, urban housing problems include homelessness
slum dwelling, squatting and overcrowding.
High rate of urbanization, ever-increasing population of urban dwellers in conjunction with
the increasing social expectations of the people are all responsible for housing problems in
Nigeria. Ibimilua and Ibimilua (2011) identified the problems of urbanization as inadequate
housing, unplanned development, and improper maintenance of existing structures, aging,
and absence of social infrastructure, waste management menace, crime, and health hazard.
A good roof to keep out the rain.
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Additionally, the houses in the urban core areas are characterized by inadequate
infrastructural facilities, poor ventilation, non-availability of in-built toilet and kitchen, as
well as poor refuse disposal system. Other problems that are associated with urban housing
are lack of effective planning, development of shanty towns, and availability of dilapidated
houses.
Generally, housing in Nigeria is bombarded with problems like poverty, discrimination
against the use of indigenous materials, ineffective housing finance, inadequate financial
instrument for mobilization of funds, high cost of building materials shortage of
infrastructural facilities, as well as the bureaucracies in land acquisition, processing of
certificate of occupancy (C of O), and approval of building plans.
Other constraints to housing development, maintenance and delivery are lack of effective
planning, ineffective government programmes and policies, uncontrolled private sector
participation, weak institutional frameworks and poor research and development into
housing. In addition to the earlier mentioned problems, Agbola (1998) submitted that housing
is inextricably interrelated with broader issues of inflation, income policy, and perplexing
range of difficult social and economic trends. All these challenges culminated in the ever-
increasing demand that cannot be met by supply.
Researches (Balchin, 1995; Onibokun, 1990; Baer, 1991; Mtafu et al, 2011; Aribigbola,
2006; Kabir, 2004; Charles, 2003) have suggested that housing problems cannot be
eradicated. Even the developed countries still have some pockets of homeless people. In
Nigeria, the problems of squatting, forced eviction and homelessness are common
phenomena in major urban centres like Lagos, Kano, Port Harcourt, Ibadan, Oweri and
Kaduna. With a population of over 140 million people and over 35% living in the cities, the
housing problem is very cumbersome. In fact, Falade (2007) projected that given an annual
population increment of 2.8% and all other factors being equal, more than 62% will be living
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in urban centres in Nigeria by year 2020. Presently, urban centres are characterized by
shortage of housing quantitatively, slum dwelling, squatter settlements, inadequate
infrastructural amenities, squalor, overcrowding and generally poor living condition.
At the national level, housing is characterized by abandoned projects, non-implementation of
housing policies and neglect of the poor. Mtafu et al, 2011 pointed out that low income level
and affordability are the major challenges.
Other problems of housing delivery in Nigeria are connected with the imperfections in policy
instruments and its implications. The problems can equally be traced to administrative
bottlenecks, in housing delivery.
2.3 Factors determining home ownership
According Hood (2014), the factors in home ownership decision include race, gender and
educational attainment, age, marital status and family size. Some factors, such as net family
income and parental home ownership, affect both benefits and costs.
1. Net Family Income: The net family income has both a direct and indirect influence
on the home ownership decision. It is related directly in that as the net income rises
within a family, the taste for home ownership also rises. A higher income has more
potential to cover the initial costs incurred by home ownership. Income is indirectly
related because as income rises, the costs of home ownership decreases. Given that
costs are constant, as income increases, the costs become an increasingly smaller
proportion of the income. This creates greater value of investment in a non-taxed asset
for investors in higher income brackets (Haurin, Hederschott and Ling, 1987).
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Details
- Pages
- Type of Edition
- Erstausgabe
- Publication Year
- 2016
- ISBN (Softcover)
- 9783960670421
- ISBN (PDF)
- 9783960675426
- File size
- 797 KB
- Language
- English
- Institution / College
- Obafemi Awolowo University – Department of Estate Management
- Publication date
- 2016 (May)
- Grade
- B. SC
- Keywords
- Environmental Design Environmental Management Estate Management Housing Owner-occupancy Land tenure Eba-Odan Oyo State Nigeria
- Product Safety
- Anchor Academic Publishing
