Analysis Of Housing Demand In Enugu Metropolis, Enugu State, Nigeria.

ABSTRACT

This study was aimed at empirically identifing the determinants of housing demand in Enugu

metropolis. To this end, the objectives of the study were to: (i) examine the trend of housing

demand in Enugu Metropolis, (ii) identify factors that influence housing demand

(determinants) in Enugu metropolis, (iii) determine whether there is variation in housing

demand among various income groups (high, medium and low) in Enugu metropolis and (iv)

identify residents’ perception of the housing demand. Survey design method was adopted for

this study. Data used in this study was collected from both secondary and primary sources.

Secondary data were obtained from published materials on housing demand and its

determinants. The primary data on the residents’ perception of the nature of housing demand

was collected with the aid of structured questionnaire, which contained 2 major sections and

53 questions. The questionnaire was validated by two environmental professionals. The

questions were structured using 5-point Likert scale. Reliability of the test instrument was

determined using Cronbach’s Alpha, which yielded a correlation coefficient of 0.83. The

pilot survey was carried out to test the clarity of the questions on the questionnaire. The study

covered a time period of 34 years (1980 - 2013). The sample size of 460 respondents was

determined from the sample frame of 928,127 (the projected city’s population) using

William’s formula representing 0.05% of the population. The stratified sampling technique

was employed in selecting 460 respondents. However, 429 questionnaires were duly

completed and retrieved reflecting 93.3% return rate. Three statistical techniques used in this

study were analysis of variance (ANOVA), Multi-linear Regression and Chi square at 0.05

significant level. The trend of housing demand differed significantly over the years (p < 0.05)

in Enugu metropolis. The housing demand was highest (172,844 housing units per annum)

during the third (2000-2013) decade and it was followed in descending order by second

(1990-1999) and first (1980-1989) decades with housing demand of 123,713 and 93,841

housing units per annum respectively. There was a significant relationship (p < 0.05) between

housing demand and the determinant factors (Population growth, Income, Institutions, Public

utilities, Security and Household size). This implies that the six identified afore-mentioned

factors are the determinants of housing demand in Enugu metropolis. Housing demand

differed significantly (p < 0.05) among various income groups (high, medium and low) in

Enugu metropolis. The low-income group has the highest housing demand (88,406 housing

units per annum) and it was followed in descending order by medium – income (31,835

housing units per annum) and high-income (14,917 housing units per annum) groups. There

was a significant difference (p < 0.05) in residents’ perception of the housing demand in

Enugu metropolis. The study recommends among other things the inculcation of the identified factors in determining housing demand in Nigeria.