Determinants of Public Housing Affordability for Large Income Diversity Groups in a New-Town Capital City: A Case Study of Abuja, Nigeria

Abstract

Scholars are polarized on the issue of the best approach for measuring housing affordability. This has generated a lack of consensus on the best method to adopt in measuring the concept. Consequently, this study is set-out to extend the literature on housing affordability by examining the public housing affordability for each income group in Nigeria using Abuja as a case study city. This study is aimed at providing the contextual framework for the redefinition of housing affordability based on the diversity of income. The housing cost approach was used to measure housing affordability, whereas the principal component analysis determined factors that caused the unaffordable housing market. The results showed that public housing was not affordable to low and medium-income earners. The unaffordable housing market for each of the three income groups was influenced by diverse factors. Consequently, public housing provision should consider the affordability of each income group. This is because factors that determine housing affordability are peculiar to each of the three income groups.