Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Housing and Poverty in Southern Ethiopia: Examining Affordability of Condominium Houses in Hawassa City
Issue: Vol. 8, No 3, 2015
Published date: 20-10-2015 (print) / 20-10-2015 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Bereket Regassa
Nigatu Regassa
Keywords: Affordability, shelter- poverty, condominium, housing, conventional measures
DOI: 10.14254/2071-789X.2015/8-3/12
Index PUBMS: 23e2a65a-aa13-11e7-8eae-080027f4daa0
Language: English
Pages: 155-169 (15)
JEL classification: I32

This study is aimed at examining the extent of affordability of condominium houses using shelter- poverty approach in one of the fast growing cities of Ethiopia, Hawassa city administration. The data were collected from a representative sample of 180 households drawn from the study population, using a combination of simple random and multistage sampling techniques. Shelter-poverty approach was used to measure affordability of condominium houses, and the key predictors of affordability were identified using Ordinary Least Square regression model. The analysis revealed that 61.7 percent of the household in the study area were shelter poor (spent more than 30 percent of their monthly income on housing expenses) and the remaining 38.3 percent are non-shelter poor. The major housing problems that resulted in shelter-poverty were choosing condominium as rental houses, low household income, high housing and non-housing expenses, large household size, high rental/mortgage cost, changes of housing and non-housing costs, short duration for making down payments, and problems related to bank loans. Finally, the study recommended that the concerned authorities introduce workable, consistent and solid affordability indices (combining the conventional and shelter-poverty approaches) that accommodate the different social and economic groups of the city, and create enabling environment for the beneficiaries to get access to credit and bank loans.