Concept of Pricing, Affordability, Cost Recovery, and Replicability in Housing
CONCEPT OF PRICING, AFFORDABILITY, COST RECOVERY & REPLICABILITY IN HOUSING
TABLE OF CONTENT 1
Introduction 3
Concept of Pricing 5
House Price Index 5
Housing Affordability 7
Housing Market Affordability 8
Cost Recovery & Replication 12
Conclusion 12
References 13
INTRODUCTION
Shelter is one of the human basic physiological needs (Maslow 's Hierarchy of Needs). In this modern era, shelter comes in a form of house and it is the most important component of the socio-economy sector. Housing as a social and economic product has a positive impact on the economy of any country.
Housing is often defined as a multi-dimensional bundle of services. It is the largest industry in most countries of the world, yet the most backwards in terms of capitalization and amount of serial production; it is the single largest family expenditure, yet many households are insufficiently prepared to cope with the complex operations involved in buying, owning or even renting a housing unit.
(Agbola, et al., 2007).
The provision of housing at an affordable price for accommodation for individuals and family of right size, type, and tenure with all appropriate internal and external facilities in a suitable location is of great concern for individuals, organizations, and the government.
Housing affordability can be explained as the gap between the incomes of very poor and the minimum cost of a reasonable adequate shelter.
Okoroafor (2007) explains housing problem as being both of qualitative and quantity, tied strongly to finance that is not available for the low-income earners (Sukumar, 2001; Okoroafor, 2007; Wa’el et al., 2011).
The provision of finance and facilities by lower middle class groups for construction in developing countries is through informal methods (self-help) (Mukhija, 2004; Denis, 2011; Wa’el et al., 2011). A much larger proportion of
TABLE OF CONTENT 1
Introduction 3
Concept of Pricing 5
House Price Index 5
Housing Affordability 7
Housing Market Affordability 8
Cost Recovery & Replication 12
Conclusion 12
References 13
INTRODUCTION
Shelter is one of the human basic physiological needs (Maslow 's Hierarchy of Needs). In this modern era, shelter comes in a form of house and it is the most important component of the socio-economy sector. Housing as a social and economic product has a positive impact on the economy of any country.
Housing is often defined as a multi-dimensional bundle of services. It is the largest industry in most countries of the world, yet the most backwards in terms of capitalization and amount of serial production; it is the single largest family expenditure, yet many households are insufficiently prepared to cope with the complex operations involved in buying, owning or even renting a housing unit.
(Agbola, et al., 2007).
The provision of housing at an affordable price for accommodation for individuals and family of right size, type, and tenure with all appropriate internal and external facilities in a suitable location is of great concern for individuals, organizations, and the government.
Housing affordability can be explained as the gap between the incomes of very poor and the minimum cost of a reasonable adequate shelter.
Okoroafor (2007) explains housing problem as being both of qualitative and quantity, tied strongly to finance that is not available for the low-income earners (Sukumar, 2001; Okoroafor, 2007; Wa’el et al., 2011).
The provision of finance and facilities by lower middle class groups for construction in developing countries is through informal methods (self-help) (Mukhija, 2004; Denis, 2011; Wa’el et al., 2011). A much larger proportion of
References: (Agbola, et al., 2007). HOUSING AFFORDABILITY Despite the contested nature of the concept of housing affordability, definitions have been employed throughout various policy settings (Gabriel et al., 2006) Similarly, Bramley (1994, p. 10) in early writings attests that “the lack of official clarity on definitions reflects inherent ambiguities to the housing affordability concept as well as political caution or expediency”. MEASURING AFFORDABILITY Burke (2001) suggests that to get a handle on the issue of measuring affordability, questions pertaining to what the measures are used for need addressing to provide an absolute measurement of affordability In a similar regard, Kutty (2007) suggests for owner-occupiers, changes in affordability have been related to amendments in mortgage costs. As further acknowledged by Mengie et al REFERENCE Tunde Agbola (1992) Affordability and Cost Recovery in shelter projects Quan Gan and Robert J. Hill (2009) Measuring Housing Affordability: Looking Beyond The Median Journal of Housing Economics Vol.18 (2009) Pg 115-125 -Retrieved from journal homepage: www.elsevier.com Denis Camilleri (2010) A Long-Term Analysis Of Housing Affordability In Malta. Retrieved from www.emeraldinsight.com S.D Nicole Gurran & Christine Whitehead (2011): Planning and Affordable Housing in