Rental Housing Supply Ecosystems in Dar es Salaam and Dodoma Final (original) (raw)
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IJSSRR, 2024
This paper presents study findings concerning rental housing delivery systems in accommodating low-income urban residents in Tanzania. Generally, the study intended to establish the operational and workable policy options for promoting affordable rental houses for the sake of narrowing the urban housing shortage gap that has been increasing over time. The study involved 100 property developers, eighteen (18) key informants, six (6) brokers and fifteen (15) tenants who were purposely selected in the study. Qualitative and quantitative data were collected through interviews with property developers, focus group discussions with key informant and local leaders. Statistical Package for Social Science (SPSS) version 20 was employed in inferential and descriptive analysis. In line with this, a Chi square technique was employed for describing the association between the variables whilst descriptive analysis was employed to describe the distribution of scores among the variables. The study has shown that 68% of property developers obtain land through informal land market while the rest 32% obtain it from a formal market. Moreover, property developers have reported that savings is the dominant source of rental housing finance mechanism in the study area which counts for 65% of the housing finance mechanisms. Other sources are remittances (16%), pensions (8%), loans (7%) and borrowing from relatives (4%). The study has revealed that the Pearson chi-square value and significance value, confirm that, there is a significant association between affordability and category of land market (x^2-Value= 65.696, P < 0.001). Furthermore, the study has evidenced that individual property developers are dominating rental housing market in the absence of policies, regulations, standards and plans which could take into consideration the access to rental housing for the low-income urban residents. The study recommends to the central and local government that there should be an urgent strategy to establish an enabling housing policy in order to promote affordable rental housing as an option for low-income urban residents in Tanzania.
Journal of Housing and the Built Environment, 2020
Private rental markets accommodate a significant share of Africa's rapidly growing urban populations. The vast majority of tenants are accommodated in rental housing supplied by private landlords. Few studies offer insights on the dynamics and logics shaping the supply and production of private rental housing in the context of African cities. This paper contributes to fill this remarkable knowledge gap with a study of the supply and production of private rental housing by self-builder households in Dar es Salaam and Mwanza, two of the largest and fastest growing cities in Tanzania. This paper examines the motivations and aspirations of self-builder landlords, the type and quality of rental housing they supply and the logics shaping their investments in housing quality and tenants' access to services. The paper argues that housing policies should acknowledge the significance of private rental housing in accommodating growing urban populations and the contribution of small landlords, such as the self-builders in Dar es Salaam and Mwanza, in the supply and production of private rental housing. Furthermore, any policies seeking to increase the availability and quality of affordable rental housing should be informed by in-depth understanding of the perspectives of such landlords. While concerns regarding lack of protection of tenants' rights and substandard accommodation are often justified, great care is needed, as policies promoting tenants' rights or enforcing minimum standards could undermine the supply of new rental housing or make rents wholly unaffordable for the poorest tenants.
The organization and performance of a low income rental market
Cities, 1996
Housing deficits have reached alarming proportions in many Third World cities where demand continues to exceed supply. In the main, most independent governments have concentrated upon the provision of owner-occupation with negative consequences for other forms of tenure. Partly due to this neglect, there are relatively few studies which have examined the dynamics of the rental sector in spite of the fact that increasing numbers of urban residents are renting, either through choice or due to constraints. This paper seeks to contribute to the literature on renting and will examine the organisation and the performance of a low income rental market in Gaborone, the capital city of Botswana. It will start by looking at the urban demand for housing and the manner in which the state has responded to this demand. The paper will then go on to specifically examine the workings of the private rental market. It will conclude by looking at the prospects of rental housing in view of recent changes which have sought to create a free housing market.
Traditional housing type has for a long time been recognised as the most inexpensive way to provide rental housing in cities of the global south. Although the architectural design may be more cost-efficient to construct than modern ones, the ultimate rent paid by a tenant may not necessarily be lower given the multiplicity of factors that affects rent. This study examines the effects of traditional Swahili houses on marginal rental values of occupied rooms, taking into account the neighbourhood and individual characteristics of both tenants and owners in Kinondoni municipality in Dar es Salaam Tan-zania. The data were collected using questionnaires which were administered to 2,339 owners and 2,113 tenants between February and June 2014. The survey solicited data on imputed rent from owners and actual rent paid by tenants and included an assessment of households, housing and neighbourhood attributes. The share of Swahili houses in each administrative unit (wards) were first computed to define rental housing submarkets and then marginal rent per bedroom was estimated for each surveyed housing location from a Geographically Weighted Regression (GWR) model. Based on these preliminary results, a Linear Mixed Effect (LME) model was then implemented to identify significant determinants of marginal rent per bedroom across sub-markets. The results suggest that, predominantly Swahili-house type rental submarkets are relatively closer to the CBD where rent-per-bedroom tend to be higher in line with both higher income and house size while limitedly Swa-hili-house type rental submarkets predominates in the periphery where rent-per-bedroom is lower in line with both income and size of the house. Thus, although traditional Swahili houses can easily be supplied by self-builders, room rents in those houses are not necessarily lower unless the houses are located far away from the city centre. These findings provide evidence on a significant departure of rental values from construction cost in self-built housing in developing countries. It is concluded that self-built traditional Swahili houses may not necessarily provide affordable rental housing despite having all the attributes of being low cost housing from the owners' point of view if the rented space is bedroom oriented as it is the case in this study.
The impact of traditional house type on rental values in Kinondoni municipality D'Salaam Tanzania
Nordic journal of surveying and real estate research, 2017
Traditional housing types has for a long time been recognised as the cheapest way to provide rental housing in cities of the global south. Although the architectural design may be cheaper to construct than modern ones, the ultimate rent paid by tenant may not necessarily be lower given the multiplicity of factors that affects rent. This study examines the effects of traditional Swahili houses on rent given the neighbourhood and individual characteristics of both tenants and owners in Kinondoni municipality in D’ salaam Tanzania. The data were collected using questionnaires which were administered to 2,339 owners and 2,113 tenants between February and June 2014. The survey solicited data on imputed rent from owners and actual rent paid by tenants and included an assessment of households, housing and neighbourhood attributes. Using the share of Swahili houses in administrative wards as a criterion for housing clusters, an LME model was then implemented to identify significant determin...
The Dynamics of Rental Housing in Nairobi and Its Outskirts
Real Estate Markets Development: Meeting the Challenge, Making the Difference - the 15th African Real Estate Society Conference
The 2012/2013 National Housing Survey in Kenya indicated that the majority of the population living in urban areas are renters. This study aims to find out why people rent, what kind of housing units are attractive and the new areas that middle income households prefer in Nairobi and its outskirts. The study will also establish whether these renters choose renting as an alternative to purchase even when they can afford homeownership. The study will carry out interviews in selected areas of Nairobi and its outskirts. The study hopes to establish that the rental market is dynamic and any developer planning to construct houses for this market must understand it first. There are several reasons already identified in literature as to why people rent. These include mobility, renting allows people to remain mobile and move when their work place changes or when a better job becomes available elsewhere. A second reason given is flexibility. Renting also gives people considerable freedom over how to manage household budgets. It can also free up some money for their basic needs. The fact that the amount paid is not large renting frees renters from major financial commitment. With more funds available renters are able to support other relatives in rural areas. Renting also brings to focus the landlord and tenant relationship, with associated problems of non-payment of rent, poor maintenance and repair culture and tenant evictions. The study hopes to come up with key policy suggestions. That is because not everyone prefers home ownership, governments must stop promising universal homeownership and be more sensitive to the needs of the renter and therefore be tenure neutral. That governments need to come up revised legislation that governors the landlord and tenant relationship.
International Journal of Urban Sciences, 2020
Since the 1990s, the Tanzanian public housing authority, the National Housing Corporation (NHC), has been changing its goal, from prioritizing delivery of affordable housing, to becoming a leading commercial and residential real estate developer. This happens against a backdrop of market-based reform and the state’s growing reliance on private markets to support urban development. In this paper, we look at the impact of NHC’s new approach and its effect on housing production and every day practice in Dar es Salaam. The analysis is based on a case study of two new NHC middle to high-income development projects and housing practice in the neighbourhoods surrounding these projects. Analysis is informed by semi-structured interviews, and project and site investigation. Findings indicate that currently, NHC operates like a private corporation, prioritizing market-rate developments over low-income housing projects, and promoting segregated developments based on land value criteria, while also lacking protocols regarding its trickling down approach. High input costs and declining state subsidies are some of the factors mentioned as a challenge towards meeting the housing needs of moderate to low-income households. The paper contributes to the international debate concerning the state’s adoption of business-like approaches to housing production and the affordability crisis.
2017
The supply of housing in Ghana is seen to be lacking behind demand due to the increasing number of population, especially in urban areas. This has caused many Ghanaians in the low and middle-income groups to resort to the rental sector for their housing needs. This study seeks to assess rental housing delivery in Abeka and specifically aims at Identifying the types of rental houses in the study area, analyse the factors that influence the rental prices, examine the challenges faced by the tenants in the study area about rental housing, assess the role of stakeholder in providing rental accommodation as well as assessing the effect of price of accommodation on rental decision making. The study was conducted in Abeka, a suburb in the Accra Metropolitan Assembly using an explanatory research design and the mixed method approach. The study used 264 tenant respondents, 12 landlords/landladies and 2 officials, each from the Ministry of Water Resource Works and Housing and Rent Control Dep...
The growing activities of informal rental agents in the urban housing market of Kumasi, Ghana
Cities, 2018
Rapid urbanization in Ghanaian cities coupled with limited supply of housing units and information gap on the market has made its access a socio-economic concern for many urbanites. To survive competition and gain access to the limited housing units in the market, tenants seek the services of rental agents to facilitate their acquisition processes. This phenomenon has given rise to increasing number of informal rental agents flooding the market. Using a mixed method approach within an overall qualitative design, this paper examines the operational characteristics of the informal rental agents and how they influence access to housing in the city of Kumasi -Ghana, where majority of tenants and landlords use their services. Interviews with the informal rental agents, their clients (tenants and landlords) and officials of the Rent Control Department as well as a survey of rental households in the city suggest that apart from its own growth, unemployment is forcing the youth into the informal rental housing agents' industry. The survey indicated that 54.8% of rental households in Kumasi acquired their housing units through the services of informal rental agents. Besides, it has generated empirical information on the agents' operations and influence in the urban housing market which will guide actors' decisions, particularly tenants and landlords on how to access, contract or work with these agents when seeking a housing unit or using their services. The information gathered will immensely contribute to enhancing the operation of the rental housing market, and its accessibility in the urban environment without destroying the core of its success.