Factor Analysis of Housing Affordability among Civil Servants in Nigeria

Abstract

Purpose - Housing affordability is a major challenge especially to low-income groups because of the need for other basic non-housing goods. This study is aimed at examining the determining factors of housing affordability in the households of low-income civil servants in selected parts of Nigeria.

Design/methodology/approach - Using multi-stage sampling technique, Lagos, Oyo, and Ekiti States were selected in Southwestern Nigeria. Questionnaire administration was undertaken among low-income civil servants on grade levels 1 to 6 drawn from the offices of government ministries in the three selected states. Data analysis of information derived from retrieved copies of the questionnaire was undertaken using Mean Rating and Exploratory Factor Analysis.

Findings - Findings indicate that available income and housing infrastructure; cultural background; and sources of construction materials constitute the key factors to housing affordability among low-income civil servants in Southwestern Nigeria.

Research limitations - This study is primarily centered on low-income civil servants in Southwestern Nigeria. Undertaking the study in other geopolitical zones of Nigeria as well as other developing countries would probably yield other areas for further research and policy implications.

Theoretical/Social/Practical implications - The study posits that, encouraging the adoption of indigenous building materials; tax reliefs; and increase in minimum wage will likely improve the present state of housing affordability among the studied low- income civil servants.

Originality/value - The study tends to be a significant contribution to housing studies among low-income civil servants. The findings of this study may be adapted for policy decision-making in other emergent economies like Nigeria.