Housing Affordability, Government Intervention and Housing Informality: An African Dilemma?
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Date
2018
Authors
Oyalowo, B.A.
Nubi, T.G.
Lawanson, T.O.
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of African Real Estate Research (JARER).
Abstract
The imperfections associated with housing markets have often been the basis for government intervention policies. The purpose of this article is to show the need for governmental responsiveness regarding local realities in structuring policies in specific sectors of the housing market. It shows how government intervention contributes to housing supply and the consequences of this in developed and developing countries. Conversely, it also explores how government intervention in co-operative societies has been utilised in various countries to
address housing supply inelasticity, the outcome of this, and lessons that can be learnt. This
study takes the form of a literature review and a quantitative survey of co-operative societies
in Lagos, Nigeria. Its analysis is based on multivariate techniques. The quantitative survey is
utilised to show a specific case of government inactivity in the co-operative housing sector,
while the literature review is utilised to showcase government intervention in co-operative
housing in four countries. The study argues that while government interventions (by way of
planning regulations) often leads to house-price increases and unaffordability in developed
countries, it has contributed to the emergence of informal settlements in several African cities.
Additionally, while co-operative societies have been historically recognised to reduce
inelasticity, improve supply and affordability in developed countries, they have yet to be
recognised and supported in African cities like Lagos. It is concluded that while housing
affordability is a dilemma that faces both developed and African countries, informality arises
as a uniquely developing country response to unaffordability. It is recommended that, learning
from history, African governments should recognise and integrate co-operative societies into
their housing supply system. Furthermore, governments should implement appropriate policies
to guide their activities towards reducing supply inelasticity, increasing affordability and the
reduction of ever-expanding informal communities.
Description
Scholarly article
Keywords
Co-operative Housing , Co-operative Societies , Government Intervention , Housing Affordability , Housing Informality , Research Subject Categories::SOCIAL SCIENCES
Citation
Oyalowo, B.A., Nubi, T.G. & Lawanson, T.O. (2018). Housing Affordability, Government Intervention and Housing Informality: An African Dilemma? Journal of African Real Estate Research, 3(2), pp.63-86. DOI: 10.15641/jarer.v0i0.563