The problems that prompted this study on housing demand and supply in Calabar metropolis include shortage in housing units, overcrowding, high rents, and delay in plan approvals, substandard housing and squalid residential environments. The objectives were to explore the solution to the identified problems above in Calabar, among others. The hypothesis tested was, to examine the relationship between housing supply and demand on rent affordability in Calabar metropolis. Data collected were gathered through the questionnaire. The simple random sampling method was adopted Chi-square technique was used to test the hypothesis. Based on the foregoing, a number of recommendations were made among which are: subsidization of the cost of building plots, the delays in plan approvals should be checked, government should increase its participation in the housing sector, the control in the price of houses as well as rents, and the formation of housing co-operative societies to enable more urban residents have financial resources to own their own houses.
- Background of the study
It is no doubt that in man’s scale of preference on basic needs housing sit among the prime of top two needs as one of the basic needs for man’s survival. Housing goes a long way to determine not only the social standard of a man but also that of a nation and a community (Eni, 2018, Ezirim, 2015). Also, housing depicts the economic situation of a nation as it is directly related to man’s welfare and affluence. Generally, the supply and demand for housing take place in a housing market. According to Bourne (2019), the housing market is a set of institutions and procedures for bringing together housing supply and demand, that is, buyers and sellers, renters and landlords, builders and consumers, for the purpose of exchanging houses and housing services as resources. The current existence of deplorable housing conditions and costs is a reality which cannot be overlooked. As population increases, lesser people are availed basic needs such as adequate sanitation, improved water supply, durable and affordable housing and adequate living space. Absence of these basic conditions has direct consequences on the physical and psychological well-being of urban populations. Globally, urbanization is increasing. The increase rate in Nigeria is high within the last two decades. Census in the early fifties showed that there were about 56 cities in the country and about 10.6 percent of the total population lived in these cities. This rose dramatically to 19.1 percent in 1963 and 24.5 percent in 2015. Today, the national population is now estimated to be more than 150 million with the urban population constituting more than 30 percent (Ajanlekoko 2011) Affordable housing is that housing which can be acquired from household income without sacrificing any other essential needs of the household. According to Strukyk (2015) housing affordability is the ability to secure a dwelling of an appropriate size and minimum physical and sanitary standards and still have sufficient income to enjoy at least the minimum consumption of other essential goods and services. No nation has ever been known to have fully provided shelter for all her citizens. In most developed countries of the world at different times in their policy pronouncement and budgets have given housing priority attention as a deliberate action to continue national program which emanates from a well-articulated housing policy. It examines in detail the present and future trends in the supply of and demand for housing within a given area. Basically, the housing market analysis identifies supply and demand factors and needs and establish procedures and processes for meeting the needs. Unlike other types of markets, the housing market has a number of distinctive characteristics. It deals with the exchange of rights and property and is, for all intents and purposes, immobile. The housing market has no specific market place where exchanges between buyers and sellers are done. Interestingly, transactions can even take place on phone. The diversity of buildings, their great historical and cultural value, the uniqueness of the spatial aspect, the richness of architectural forms and details, and the trees often found there, all have a substantial influence on the quality of housing as perceived by the residents. The qualities of spatial aspect and layout, often supplemented by the specific manner in which they are used, make these areas interesting and pleasant, as well as places of attraction for many citizens of the town, and visitors from afar. The requirement of housing for comfort, safety, experience, prestige, satisfaction, and the occupant’s convenience remain a global consensus. This is why it has remained a vital social condition that defines the living standard of a country’s citizens. When the quality of housing is available and adequate, capital expenditure on health, recreation, crime prevention, and pollution control is less from residents and government alike, and often enhances productivity and prosperity (Olanrewaju & Woon, 2017; Gan, Zuo, Wen & She, 2019). The lack of or inadequacy of housing, usually a consequence of high rates of urbanization, has resulted in its high demand and poor quality (Demographia World Urban Areas, 2017; Gan et al., 2017). Housing problems across Calabar is exacerbated by low investment in medium and low-income housing by both the private sector and government. Field observations showed how the private developers control most of the land which they are only interested in developing for luxury apartments, obviously beyond the affordability of the majority of urban dwellers. This leads to a housing crisis in the city with huge environmental consequences in terms of urban dwellers resorting to self-help for accommodation. Animashaun (2010) observed that the problem goes from residential housing adequacy to housing quality which he concluded has social, psychological, environmental, and cultural impacts on dwellers. The housing quality debate in Calabar and Nigeria continues unabated as the nations are yet to successfully implement any social housing since the first national development framework. The study aimed at assessing the socioeconomic impacts of rent, the relationship between the affordability of rent and housing quality as well as between income and expenditure on housing. It further invested the considerations for rented residential housing choice in specific districts of Calabar.
- STATEMENT OF THE PROBLEM
Housing problems across Calabar are no doubt heightened with land developers having less interest to build medium and low cost housing. Preliminary survey in the city showed that private housing developers control most of the land in Calabar and are interested to develop high cost or luxury housing for bigger margin or profit. The desire for high cost housing makes the housing cost beyond residents‟ affordable income. This indeed, creates housing problems to the urban poor with medium and lower income. According to Animashaun (2010), the problem of inadequate supply of residential housing and rising rental cost seems to be exceptionally serious in Calabar. In addition, the housing problems in Calabar vary from inadequate quantity and quality of housing to the attendant impact on the psychological, social, environmental and cultural aspects of housing. Accessing quality housing in Nigeria and Calabar has been an issue of discuss by policy 3 makers and scholars alike over time, thus the question of „the affordability of housing The challenge becomes not only to provide the houses but to make the houses affordable to the average Calabar resident. It is against the above background that the study aimed to examine the socio-economic impacts of rent to respondent, assess the relationship between rent affordability and housing quality as well as between income and expenditure on housing and to investigate the considerations for rented residential housing choice in specific districts of Calabar. The unprecedented rapid population growth through rural-urban migration and natural increase and uncontrolled urbanization usually lead to the concepts of urban sprawl and squatter settlements. It is worthy to note that while the population of Calabar metropolis is increasing at an alarming rate, there is no complementary increase in the development of new dwelling units. Where such dwelling units are available, the rent is always exorbitant making it difficult for the low income population to acquire a decent house. This implies that there is always an increase in the demand for alternative low-cost housing accommodation which leads to urban sprawl to the city’s periphery. The vacancy rate in squatter settlements is very low. This is because the new buildings are occupied by tenants who are willing to pay to the landlords considering their income. It is in view of this that this study becomes pertinent to examine housing supply and demand in calabar metropolis.
- OBJECTIVE OF THE STUDY
The study has one main objective which is sub-divided into general and specific objective, the general objective is to examine housing supply and demand in Calabar metropolis. The specific objectives are;
- To examine if there is any significant relationship between housing supply and demand on the development of Calabar metropolis
- To ascertain the impact of housing supply and demand on the development of real estate sector in Calabar metropolis
- To examine the influence of housing supply on the growth of Calabar metropolis
- To proffer suggested solution for the identified problem
- RESEARCH QUESTION
The following research question were formulated by the researcher to aid the completion of the study;
- Is there any significant relationship between housing supply and demand on the development of Calabar metropolis?
- Is there any impact of housing supply and demand on the development of real estate sector in Calabar metropolis?
- Does housing supply influences the growth of Calabar metropolis?
- RESEARCH HYPOTHESES
The following research hypotheses were formulated by the researcher to aid the completion of the study;
H0: There is no significant relationship between housing supply and demand on the development of Calabar metropolis
H1: There is a significant relationship between housing supply and demand on the development of Calabar metropolis
H0: housing supply and demand does not have any impact on the development of real estate sector in Calabar metropolis
H0: housing supply and demand does not have any impact on the development of real estate sector in Calabar metropolis
H2: housing supply and demand does have an impact on the development of real estate sector in Calabar metropolis
- SIGNIFICANCE OF THE STUDY
It is believed that at the completion of the study, the findings will be of great importance to student of estate management as the study seek to give an insight to the development of real estate sector in Calabar metropolis, the study will also be of great importance to researchers who intend to embark on a study in a similar topic as the findings will serve as a reference point to further studies. The study will also be of great importance to student, teachers, academia’s, lecturers and the general public as the findings of the study will contribute to the pool of existing literature on the subject matter and also contribute to knowledge on the subject matter.
- SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers housing supply and demand in Calabar metropolis. But in the course of the study, there are some factors that limit the scope of the study which were beyond the researcher’s control;
AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
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.
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.
- OPERATIONAL DEFINITION OF TERMS
Housing, or more generally, living spaces, refers to the construction and assigned usage of houses or buildings individually or collectively, for the purpose of shelter
Housing Demand is the quantity of a residential building that a buyer or tenant are willing and able to purchase or rent at various prices during a given time
Housing supply refers to the quantity of houses a supplier offers to public for rent or outright sale. Supply and demand are key players in determining prices and goods consumption or services.
1.9 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.