RESIDENTIAL RENT DIFFERENTIALS BETWEEN TOWN CENTER AND PERI-URBAN
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RESIDENTIAL RENT DIFFERENTIALS BETWEEN TOWN CENTER AND PERI-URBAN
ABSTRACT
This study looked into the differences in rentals between the town centre and the peri-urban areas of Bukuru. It considered variables that influenced the disparity in rent for 1, 2, 3, and 4 bedroom residences in the study area. A total of one hundred questionnaires were distributed and returned, with the results subjected to various calculations.
The data on 1,2,3, and 4 bedroom house rents were analysed using Analysis of Variance (ANOVA), a statistical approach appropriate for analysing diverse variables. The findings revealed that the majority of known causes influence differentials in residential housing rent in Bukuru.
The various determinants of house rent showed the mean rent for urban and peri-urban of 1,2,3, and 4 bedroom for housing categories in Bukuru, the occupational distribution of the respondent which 25 (50%)
out of 50 respondents in the urban area are civil servant, 5 (10%) of the respondents are artisan while in the peri-urban area which 8 (16%) are public servant, 15 (30%) are artisan while the other 7 (14%) are from other works of life.
CHAPITRE ONE
1. INTRODUCTION
As defined in the United Nations Habitat Agenda, the provision of adequate housing that is safe, secure, accessible, affordable, and sanitary is a fundamental human right.
Housing has been unanimously regarded as the second most essential human necessity. It is a basic requirement for human survival and an important component in improving citizens’ quality of life.
This internationally acknowledged truth has been recognised by successive Nigerian governments, as evidenced by pockets of coordinated activities and plans in mass housing creation over the years. Despite these initiatives, disparities in housing rent remain a significant concern.
The significant shortfall in housing provision and rent has been attributed to the inadequacy of the existing national housing policy (1991) to meet current challenges and economic trends and to guide sector development.
Housing, in all of its ramifications, is more than just shelter; it encompasses all of the social services and utilities that go into making a community or neighbourhood a livable environment.
The housing problem in Nigeria is enormous and complex, with marked regional differences; additionally, the challenges posed by the rapid rate of uncontrolled and unplanned urban growth are immense.
Millions of people live in substandard and subhuman conditions, with slumps, squalor, and drastically inadequate social amenities. The housing problem in our cities is not limited to the number of housing units, infrastructure,
disparities in housing rent, and the environment; the result is growing overcrowding in homes, neighbourhoods, and communities, as well as increased pressure on infrastructural facilities such as roads, drainages, power supply, and a rapidly deteriorating environment.
The situation is slightly different in rural areas, where the problems are primarily caused by insufficient and poor infrastructural facilities such as roads, drainages, water, power supply, differences in housing rent, and basic social amenities (schools, health care facilities, etc.).
The housing sector is the foundation of the developed world’s economy. In more advanced economies such as the United States of America, the United Kingdom, and Canada. This sector accounts for 15% to 35% of aggregate investment worldwide, and the housing sector in Nigeria contributes a significant 0.38% to its G.D.P.
These countries rose to become the greatest advanced economies on the tide of housing development, and the housing sector has the potential to general employment, increased productivity, raised standard of living, and alleviate poverty.
It also has the potential to reduce crime, militancy, and terrorism, as well as significantly address wealth disparity and security concerns. It is able to do so because housing investment influences all aspects of our lives.
1.1 BACKGROUND OF THE STUDY
In terms of priority, shelter is generally the most basic of man’s survival needs after food. Although a house is not a home, it has an enabling influence through its natural and physical location on a variety of services made available,
some of which include health, education, and recreation, public utility services such as power supply, transportation, and sewage disposal, and economic services such as work opportunity and income.
The monetary value assigned to these factors is typically in the form of house rent or house sales. It is consequently expected that variances in these services between houses will result in a difference in their rent.
In today’s Nigeria housing market, market forces of demand and supply may also produce differences in house rent.
Under a price system, the law of demand and supply states that “the higher the demand for particular goods or services, the higher the price for those goods or services.” Because competition for housing units tends to raise the rent paid on such housing units,
Nigeria’s housing crisis, like that of other emerging countries, is mostly urban-oriented. Man’s desire for greener pastures and better livelihoods necessitates an immense demand for housing in metropolitan areas that far outnumbers the available supply.
Rapid urban growth caused by migration of people from rural areas and other towns to urban centres, this migration trend is usually associated with an accelerated temporal of social economic development of activities in urban centres and its result of activities in high rent as a result of shortage of dwelling unit which is as a result of demand for housing units at different spatial locations varies, thus differences in house rent are unavoidable.
Jos South, like every other city in Nigeria, has a high level of attraction for both indigenous and foreign migrant not only because of its high economic activities, but also because it has a conducive weather for learning and the demand for houses is much cheaper and affordable when compared to other city centres such as Lagos, Port Harcourt, and Abuja.
1.2STATEMENT OF THE PROBLEM
The study’s challenge might be defined by identifying the principal ramification (aspect) of the many components that interact to form the observed residential rent discrepancies in Bukuru.
Bukuru is currently one of the key urban centres in the Jos-Plateau, and this is accompanied by a tremendous influx of people and their businesses to the city, as well as an increase in housing demand supply as a result of the unmanageable influx of people into the city.
The current security issues in Jos are a factor to consider in determining where an individual would like to live for safety, which is heavily influenced by the individual’s faith. In this instance,
the safe portions of town tend to draw more individuals migrating from risky places, resulting in a tremendous inflow of people in such areas, leading to high demand for residential housing and, consequently, high rent.
On the other hand, places considered unsafe attract lower rent costs because the supply of such houses exceeds the demand for such housing unit.
An extreme shortage of residential houses in the area has a detrimental and positive influence on house rent in general, and in individual places, which could explain for any differentials in house rent that may exist between Bukuru and its suburb.
The problem of this study is posed in terms of the following questions in light of the development:
1. What are the dwelling rent differences in Bukuru between the town centre and the periphery?
2. What variables contribute to the spatial variance in housing rent in the research area?
3. What are the socioeconomic characteristics of the research area’s residents?
4. What is the monthly income of the head of each household in the study area?
1.3 THE STATEMENT OF THE PROBLEM
A housing study or housing rent is such a complex undertaking that a single study frame cannot be used effectively for assessment. According to Onibokun 1971, the tenants (residents), the dwelling (housing) unit, and the environment (of which the dwelling is a part) should all be included in the determination of housing rent.
Residential rent was regarded as a basic index in the examination of qualitative and quantitative inadequacy in residential accommodation in Nigeria’s third National Development Plan (1975-1980), as well as an indication of the extent of overcrowding.
It has also been one of the indices utilised in the provision of housing units, particularly in metropolitan areas where rapid population expansion coupled with increased socioeconomic activity has exacerbated Nigeria’s housing scarcity.
Housing rent varies from country to country, and within a country, changes in climate, degree of urbanisation, and socioeconomic growth all have an impact on housing rent.
1.4 FORMULATION OF THE PROBLEM
The market forces of demand and supply interact powerfully to produce rent differentials. The stronger the demand for dwellings in a given area, the higher the rent for similar houses in that area, and vice versa.
Other factors such as accessibility, housing quality, environmental quality, and so on may also interact to affect demand for houses and, as a result, house rents.
Because the market force for housing supply is typically slow in responding to the market force for housing demand (Ball 1983), differentials in house rents are demand based. These factors, as well as how they affect house rent and fluctuations, are described in the sections that follow.
1. The standard of living
The flow of services provided by a house can be affected by the number of rooms, the size composition and choice of building materials, the availability of interior facilities (pipe-borne water, kitchen, water closet and bath), and house architecture.
The longevity of a house in terms of age and quality also improves its quality. As a result, the quality level of a house is determined by the rate at which it is required. As a result, higher-quality residences command greater rents than lower-quality houses.
Because house quality varies by location, a spatial variation in house quality would result in acceptable rent discrepancies.
Quality of the Environment
The environment provides vital needs for man such as air, peace, cleanliness, security and socio-economic status of neighbours, drainage, topography, and so on.
The better the environmental quality of a house and its location, the higher the demand for such houses or location, and a corresponding increase in the rents of such residential house or location.
Bukuru, on the other hand, has a relatively excellent environmental quality, hence disparities may not be apparent when compared to other areas in the state.
The quality of any given environment cannot be uniformly distributed throughout distance and time; it is a function of disparities in people and quality, resulting in spatial differences in home rent.
3 Housing Supplies
The number of houses made available to individuals or households in a population at a given time is referred to as housing supply. In most cases, the supply of housing space is a function of the builder’s profit-maximizing behaviour during construction, and the rent of a house varies depending on the attribute the builder decides to supply (Butter and Beckmann, 1977).
4 Demand for Housing
Migration into Jos is a primary driver of Bukuru’s insatiable desire for housing. However, the supply of housing space has not been matched by the demand for home rents in various Jos neighbourhoods.
Another consideration is the income level of Jos residents. Increased demand for housing in some neighbourhoods is also a function of individuals’ income levels, resulting in a cluster in some neighbourhoods with lower average rents in comparison to neighbourhoods with higher rents.
The income level of occupiers is the key governing element that raises rents and rent variations among places, yet housing demand and supply are in equilibrium.
5 Possible Housing Locations
The accessibility of a residence to its place of work, core business district, and local infrastructure facilities is valued. The higher a location’s accessibility (and hence the lower the economic cost of migration in terms of distance, time, and convenience),
the larger its comparative advantage, and consequently the greater the demand for dwellings in that location. As a result, because location exhibits spatial diversity in terms of accessibility, house rent would likewise vary spatially.
1.5 PURPOSE AND OBJECTIVES OF THE STUDY
The purpose of this study is to examine the residential rent differentials between town centres and peri-urban areas in Bukuru, Plateau State, with the following objectives in mind:
1. Identify the elements that have the greatest influence on any such rent differentials in the research area.
2. To identify the elements that influence any rent differentials in residential dwellings that may exist in the study region.
3. To ascertain the extent to which each factor determines any differentials in housing rent in the research area.
4. Determine the association between residential housing rent and household head income classes in the study area.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
The scope of this study examines the differences in residential housing rents in Bukuru town and its peri-urban areas. The socioeconomic characteristics of the household Head, such as income, gender, marital status, job status, and age,
were among the variables investigated. The study also discusses the causes for immigration to Bukuru, as well as the types of residences occupied.
The study is limited to residential houses, and only 1 bedroom, 2 bedroom, 3 bedroom, and 4 bedroom house types were evaluated because they are the most common in the studied locations.
Although changes in residential home rent may exist in the temporal dimension, the study will omit temporal variations in house rentals.
1.7 RESEARCH HYPOTHESIS
HO – Residential dwelling rents in Bukuru do not differ much between town core and peri-urban areas.
H1 – Residential dwelling rents in Bukuru vary greatly between town centre and peri-urban areas.
1.8 JUSTIFICATION FOR THE STUDY
Rent has been a major influence on the type of houses people live in as well as the quality of dwellings in general, due to the necessity of shelter to human life. This study delves deeply into the numerous reasons for disparities in housing rent.
Because of its significance, housing rent is primarily decided by factors such as location, income level, location security, housing type, and housing quality. In light of the aforementioned considerations,
the purpose of this study is to determine which one is the most important deciding factor in rent discrepancies between Bukuru’s town centre and peri-urban areas.
Despite the pressing need for excellent, affordable rental housing, one-third of our country’s households, across all income levels, live in rental housing, some by choice, some by necessity.
Some choose rental housing because it provides an affordable and convenient lifestyle close to neighbourhood amenities; however, because home ownership is out of reach for many working and income families, rental housing allows families to live in communities close to work, education, and affordable transportation.
1.9 STUDY SPACE
1.9.1 Human Population and Activities
Bukuru, the study area in Plateau State’s Jos South Local Government Area, has a population of 15540 people, according to the Geo Name Geographical Database, and it is 15 kilometres south of the state capital. Mining activities in Jos, particularly in Jos-South, have resulted in an influx of migrants, primarily Igbos and Yorubas, who account for more than half of the population.
1.9.2 Location
Bukuru is located on the Jos Plateau at 90 48’00” N, 80 52’00” E and has a population of 150 people. It is 15 km south of the state capital.
The town, which is divided into four (4) districts of Du, Gyel, Vwang, and Kuru, used to be regarded a separate city from the nearby city of Jos, but like any other type of urbanisation, the city of Jos has combined with the town of Bukuru to form the Jos-Bukuru metropolis.
Ministry of Lands and Surveys
Fig. 2: Plateau State map displaying Jos South L.G.A.
Ministry of Lands and Surveys
Fig. 3: Jos South District Map, depicting Bukuru
Ministry of Lands and Surveys
1.9.3Climate
In general, the climate in Jos is milder than the rest of the country. It’s energising and the closest thing to a temperature climate in this tropical zone. Jos South has a significantly cooler temperature than the rest of the country. The maximum and minimum recorded mean temperatures are 18.7F (27.60C) and 51.7F (10.90C), respectively; there are no extreme dual temperatures or significant changes between the rainy and dry seasons.
Intermittent rains and drizzles are common during the rainy season. One intriguing element of Jos weather is that it may rain in one part of town while being dry and sunny in another, despite the fact that drainage is normally good and due of its climate and unusual geography.
1.9.4 Terrain
Jos’s topography is mainly mountainous, with many stunning rock formations and unique physical features. Essentially, Jos serves as a hydrological nexus for several rivers in northern Nigeria and provides a cool temperature appropriate for cattle husbandry and exotic crop cultivation in the northern section of the state.
Its topography climbs steeply from 200 metres to an average height of 1,200 metres, and there are enormous peaks such as the Share Hills (1829m), extinct volcanoes, and crater lakes on the Jos, as well as several great rivers such as the Kaduna, Gongola, Hadejia, and Yobes.
1.9.5 Soil and Plant Life
The principal soil units of Jos (South) are classified as tropical ferruginous soils, which are much thinner on the higher plateau but reach greater depth in the south. There are also large areas of loamy volcanic soil, which responds well to fertilisers, and soil erosion is a serious environmental hazard.
Tin mine in its prime made several areas surrounding Jos, Bukuru, and other areas more prone to soil erosion.
The vegetation of Jos (South) is primarily comprised of small trees, grass, and plateau type mosaic vegetation. In some regions of Jos South, there are thick margins of Cactus that are planted around household farms or compound land.
1.10 WORK ON CONCEPTUAL FRAMEWORK
Urban scholars have increasingly found the neoclassical economic paradigm weak and inappropriate in explaining rents and vacancy rates across cities.
Ernest Burges (1925) was the first sociologist to establish a widely accepted theory of urban rent, known as the concentric zone hypothesis.
Rent is determined by density, location, and socioeconomic class. The ghetto, Chinatown, underworld, and black belt are located around the city’s centre, which Burges refers to as the “zone of transition,”
while the working class, middle class, and rich live as a social group further out from the city. Burgess also stated that the quick movement of people near subways and trains impacted the value of land.
Burges also presented a descriptive urban land use model in which cities were divided into concentric circles that extended from the city to the suburbs. Burges’ observations of a variety of American cities, particularly Chicago, for which he offered empirical proof, served as the foundation for this presentation.
This part also looked at the many elements that influence rentals in the city and suburbs, as well as how and why rents rise as you get closer to the central business area. To begin, we must define rent.
Rent is a recurring payment made by a house user to the owner of the dwelling. Each dwelling will have a market value, which will be used to set rentals.
Rent is also affected by distance from the CBD; everyone has some type of commute to work, the cost of which can be calculated. To compensate for a decreased commuting cost by providing homes closer to the CBD, rent in that area will be greater than in areas where the commuting cost is much higher.
Rent is a fundamental component of urban economics, and rent can be influenced by the sort of place where people live. For example, if there is a theatre district with a good park, people will be more inclined to live there.
Rents will rise in this instance because people are prepared to pay more for a nicer neighbourhood. This is also true for nicer schools and families; parents with children may be ready to pay a higher rent in order for their children to attend a good school than in other places. The inverse is likewise true for less desirable places.
Over the last 30 years, there has been steady progress in the study of residential house rentals through coordinated research in this area, and there has been an abundance of information regarding disparities in house rent and the causes that allow for such occurrences.
However, rent studies have focused on those aspects from which the consumer obtains the greatest utility and have attempted to rank them. As a result of such study,
more light has been thrown on the empirical validity of the standard theories of residential location. The factors that determine home rentals and their related effect on housing demand are the focus of this study.
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