Assessment of Condominium Houses Affordability

Book excerpt: Thesis (M.A.) from the year 2020 in the subject Economics - Other, grade: 1, Ethiopian Civil Service University (IGAD), language: English, abstract: This study has been conducted in Addis Ababa city of Akaki Kality sub city administration, Gelan condominium site with the general objective of assessing condominium houses affordability. It also attempted to identify the factors which affected the low income households for affording the condominium house and as well as to assess whether the condominium housing project benefits this targeted groups. Among other condominium sites Gelan site was chosen purposively. The study used mixing qualitative and quantitative methods and used primary and secondary data sources. To select the target population a researcher used simple random and purposive sampling technique. The study found that, majority of the residents of the condominium in the study area can afford the cost of condominium house because they were getting high income per month. However, the households with low income could not afford the price of condominium house. Furthermore, in the study area, condominium housing beneficiaries were not those who were classified as low and middle income categories rather households with higher income categories were benefited more. Majority of the housing units are owned by non targeted groups. The study also showed that, the intended objectives of condominium housing programs to provide 30 percent of the housing unit for female headed households has been well applied in to the study area. Additionally, the study revealed that, external factors such as poor investigation of the real problems on the ground, weak institutional evaluation and monitoring system of the program, the unparticipatory of the program and corruption practices was the main challenging factors that affects the households to benefited from the program. Based on the finding the researcher suggests the following to minimize the current problems of housing in the city through, giving special attention to control rural to urban migration, facilitating a comprehensive national housing policy by providing different subsidy mechanisms, establishing governmental housing banks that particularly work on the provision of low cost houses, encouraging the saving culture of the society, expanding the construction of rented houses, legislating and enforcing laws on the price of condo houses and increasing the participation of the city’s residents on evaluation of the program.