Major Factors Causing Housing Deficit in Ghana

Abstract

Importance of housing in the economic and social development of a nation cannot be over estimated. Housing is the key element in the generation of economic growth and development. As a result, it has had strong positive impact on the growth and development of many societies in the world but this is not the case in Ghana.  The country has been suffering for many years in trying to solve the housing situation through so many programmes and policies but to no avail. The consequences have resulted in a housing deficit of well over one million houses. It was against this background the study was being carried out to examine the major factors causing housing deficit in Ghana. Questionnaires survey was sent to the members of Ghana Real Estate Developers Association operating in Accra Metropolis. Out of the total fifty-two (52) questionnaires sent, only thirty-six (36) of them were able to receive from the private estate developers. This showed a response rate of 69.2%. The data from these professionals were analyzed using Average Mean Score and Cross-tabulation (Correlation Matrix). The findings from the study revealed that; inadequate mortgage finance, defective land tenure system, high cost of land and among others were the major factors influencing housing deficit in Ghana. Hence streamlining the land tenure system by proper implementation of Land Administration Project (LAP), assisting the developers to access mortgage loan at low rate and provision of lands from land banks were some of the recommendations suggested to help reduce the housing deficit in Ghana.

Keywords: Housing Deficit, Housing stock, Cost of land, Ghana