Determinants of Urban Housing Choice in Debre Berhan Town, North Shewa, Amhara Region, Ethiopia

Abstract

In developing countries, in the midst of important factors influencing urban housing choice, demographic, socio-economic and institutional factors are the most critical. This study aims to investigate the determinants of housing choice in Debre Berhan town, Amhara Regional State, Ethiopia.  Qualitative and quantitative data were used. Both primary and secondary data were used to carry out the study. A multistage sampling procedure was used and a total of 395 household heads was selected by a simple random sampling method from three home ownership alternatives of four Kebeles. Ordinary least square estimation technique was used to estimate the hedonic price of the house and multinomial logit model was used to estimate the determinants of housing choice in the study area. The result of the study indicated that age of household head, sex of the household head, educational level, the price of the housing, years of residence, income of the head and access to credit were determinants of urban housing choice in the study area. While, near amenities, floor material, age of the house and the numbers of the bedroom were significantly affected housing price in Debre Berhan town. The study recommends that government and stakeholders should support households to construct and purchase house.

Keywords: Housing Choice; Hedonic price and Multinomial Logit

DOI: 10.7176/JESD/12-19-03

Publication date:October 31^st 2021