A Hedonic Pricing Model of the Impact of Housing Structural Features on House Rent in the Lagos Residential Property Market
Housing is not a homogeneous commodity, but rather a multidimensional bundle of services. The hedonic price model is employed to model effectively the heterogeneous nature of housing in this paper, based on the Lagos State Housing Survey of 2006, for which a 6000 sample size was used. The results of the hedonic pricing model show that when renting or buying a house, people are willing to pay more for desirable structural traits provided rather than staying away from these facilities. Therefore, if proliferation of urban slums, shanties and squatters’ settlements is to be drastically minimized or completely eliminated, it would be more beneficial for government and housing suppliers to provide such basic social amenities and important housing accessories.