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Population growth and housing in Nigeria

The relationship between population and housing is two-sided. On the one hand,population change leads to a changing demand for housing. Population growth, and particularly a growth in the number of households, leads to a growth in housing demand. Population decline might lead to a decrease in housing demand. This will,however, only happen in the long run, after not only the number of people but also the number of households has started to decline. The danger of population decline is greatest in remote rural areas and in areas with lower-quality housing.At the same time, the supply of housing influences the opportunities for population increase through migration. Adequate housing supply might attract migrants or influence their choice of residential location. This mechanism, however, mainly operates for migration within countries and much less for international migration. Usually, homeowners are considerably less likely to migrate than renters. This is partly the result of the fact that the transaction costs of moving are much higher for owners than for renters.

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So, if the level of home-ownership is too high in a country,this might seriously hamper the spatial flexibility of the labour force.Housing supply may also play a decisive part in leaving the parental home and
the formation of married and unmarried unions. It is even likely that the supply of housing plays a part in the timing of fertility or the number of children people have.
The best opportunities for leaving the parental home and family formation are arguably found in a situation where housing quality is high and access is easy, or in a
situation where quality and prices are diverse and there is an adequate supply of affordable rental next to owner-occupied accommodation.

Rapid population growth rates coupled with low levels of economic development in developing countries have created among others immense obstacles to the provision of adequate housing to the majority of residents. Population growth rates are growing faster than the provision of new housing and housing infrastructure. This has resulted in intensive usage of the existing stock of housing and deterioration of housing environments.

The performance of the housing sector is one of the yardsticks by which the health of a nation is measured. In most developed economies, the housing sector is seen as an important sector for stimulating economic growth.

Nigeria is the most populated nation in Africa. It is also one of the most rapidly urbanizing countries in Africa and over 48% of the population in Nigeria lives in the urban areas, covering less than 10% of the habitable land areas.

With an estimated annual national population growth rate of just over 2% and an annual urban population growth rate of about 4%, Nigeria has a population that is becoming more and more skewed to the urban areas, towns and cities.

Nigeria with a population of about 180 million people is currently facing a national housing deficit of about 17 million units. In 1991, the Nigeria housing deficit was at 7 million, it has since increased from 7 million in 1991, to 12 million in 2007, 14 million in 2010 and currently 17 million units.

The implications of this very high housing deficit is that tenants in rented apartments pay as high as 60% of their average disposable income far higher than the 20-30% recommended by the United Nations.The ever continuous increase of Nigeria’s population far outstrips its housing needs with the direct consequence being lack and inadequate housing. With a population growth rate of 2% in a population of 180 million, the current housing production of 100,000 units is not good enough.

with an estimated annual national population growth rate of just over 2% and an annual urban population growth rate of about 4%, Nigeria has a population that is becoming more and more focused to the urban areas, towns and cities.

The high growth rate of the urban population arises from both a higher birth rate and more importantly the increasing rural–urban migration. More and more people move away from the rural areas, abandoning their homes and occupations for the supposedly better infrastructure and better job opportunities of the cities.

This trend in population growth, coupled with expanding economic activity and rising rural-urban migration has put much pressure on the existing housing infrastructure. This is causing pervasive housing crisis, particularly in the urban cities and other highly habitable areas. This has increased demand for housing over the last two decades resulting in overcrowding and increased number of slum communities.

 

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