A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Housing Finance Systems and Affordable Rental Housing Delivery in Kenya
Housing finance systems consist of a variety of market mechanisms and policy interventions aimed at facilitating the acquisition of housing capital. Housing finance, which provides the financial backing needed by developers to produce housing for rental and sale, is typically seen as a major pillar in the housing industry. However, there are instances when housing finance systems have unintended consequences, such as causing market failure in a certain subset of the housing market. It is a similar situation in the rental housing market, where supply of affordable rentals has lagged behind demand. As a result, the primary goal of this research is to find out how the housing finance systems interact with the rental housing market and how they affect market results. It primarily relies on qualitative research design, such as semi-interviews and document analyses, to obtain relevant information. It relies on primary data from financial institutions and private property developers. The results show that because rental housing development is seen as high risk, banks are more cautious and selective in providing loans for it than they are with regard to development of homes for sale. This research recommends that housing policy requirements should be integrated with the financial market system so that financial institutions become indifferent to lending to both rental and development for sale in order to increase the attractiveness of rental housing to the former.
Housing Finance Systems and Affordable Rental Housing Delivery in Kenya
Housing finance systems consist of a variety of market mechanisms and policy interventions aimed at facilitating the acquisition of housing capital. Housing finance, which provides the financial backing needed by developers to produce housing for rental and sale, is typically seen as a major pillar in the housing industry. However, there are instances when housing finance systems have unintended consequences, such as causing market failure in a certain subset of the housing market. It is a similar situation in the rental housing market, where supply of affordable rentals has lagged behind demand. As a result, the primary goal of this research is to find out how the housing finance systems interact with the rental housing market and how they affect market results. It primarily relies on qualitative research design, such as semi-interviews and document analyses, to obtain relevant information. It relies on primary data from financial institutions and private property developers. The results show that because rental housing development is seen as high risk, banks are more cautious and selective in providing loans for it than they are with regard to development of homes for sale. This research recommends that housing policy requirements should be integrated with the financial market system so that financial institutions become indifferent to lending to both rental and development for sale in order to increase the attractiveness of rental housing to the former.
Housing Finance Systems and Affordable Rental Housing Delivery in Kenya
Aigbavboa, Clinton (editor) / Thwala, Wellington (editor) / Aghimien, Douglas (editor) / Olonde, Victor Otieno (author) / Mooya, Manya Mainza (author) / Rajaratnam, Kanshukan (author)
Construction Industry Development Board Postgraduate Research Conference ; 2022 ; Eastern Cape, South Africa
Towards a Sustainable Construction Industry: The Role of Innovation and Digitalisation ; Chapter: 44 ; 446-455
2023-04-24
10 pages
Article/Chapter (Book)
Electronic Resource
English
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