AN ANALYSIS OF THE IMPACT OF HOUSING CONDITION AND ENVIRONMENTAL QUALITY ON RESIDENTIAL PROPERTY VALUE

AN ANALYSIS OF THE IMPACT OF HOUSING CONDITION AND ENVIRONMENTAL QUALITY ON RESIDENTIAL PROPERTY VALU

ABSTRACT

The aim of this project is to examine the impact of housing condition and environmental quality on residential property value in Kofar Hausa, Keffi Metropolis. The specific objectives are as followings: identify the various environmental problems common in residential neighbourhood in Kofar Hausa, Keffi Metropolis, evaluate the relationship between neighbourhood attributes and residential property values and ascertain residents rating of environmental qualities and neighbourhood attributes in Kofar Hausa, Keffi Metropolis, examine the effects of environmental qualities and neighbourhood attributes on residential property values. The research method used was survey The sampling techniques adopted for this study is the random sampling techniques, the techniques give every member of the population the opportunity to be selected without any form of preferential treatment. A total of one hundred (100) copies of questionnaires were administered, and out of these, seventy five (75) copies of the questionnaires were correctly filled and returned.  The researcher make use of statistical tools such as tables, percentage and descriptive methods to presents  and analyzed the data gathered from the field survey which was considered appropriate for the research. The study revealed that the problems common in residential neighbourhood in Kofar Hausa, Keffi Metropolis is inadequate basic services such portable water, constant electricity supply, good and affordable health care etc, substandard housing this is evident in the presence of squatter and slum settlement, irregular and informal settlement, finally poverty and social exclusion contributes tremendously to the environmental problems. Finally, the study revealed that environmental qualities and neighbourhood attributes affects residential property value in Kofar Hausa, Keffi Metropolis. The researcher recommend that the government should make concerted effort in providing the basic social amenities in Kofar Hausa, Keffi Metropolis to reduce the environmental problems encountered and the development control should ensure that development control laws are fully enforced to avert the problem squatter, slum, irregular and informal settlement.

CHAPTER ONE

1.0       INTRODUCTION

1. BACKGROUND OF THE STUDY

Housing condition and environmental qualities are largely responsible for neighbourhood attributes on real estate values. Man’s attitude towards the surrounding environment is not neutral because human search for location that deliver a high quality of life (Mchi, 2013). Those expectations particularly concern man’s daily surrounding including residential area or recreation ground. The qualities of that environment largely affect the decision made on real estate market value.

Housing condition and environmental qualities are numerous and its’ effect are in various ways, such as physical and socio-economic obsolescence and environmental problem and a host of others have their consequence on human. The problem of environmental and efforts directly towards their alleviation command global attention because of the increasing proportion of the world population being affected by such issues whether or not; we have face an environmental crisis “It is the subject of much debate those days some argue that our environmental problem are neither unprecedented nor over-whelming. The role of environment in assimilating waste products and providing life-support amenities will become increasingly important. Protection and conservation of key natural systems and important ecological functions will essentially, not only in terms of their value and in terms of recreation but also because these systems and functions may provide invaluable support and protection for economic activity and human welfare. But little is known about the role of environment in recent years there is growing recognition that efficient and sustainable management of environmental resources is indeed critical to economic development (VanKamp, 2003).

Olotuah and Taiwo (2013) reported that housing conditions, in terms of housing patterns, roofing, walling, flooring materials and other infrastructural facilities that make up the house, play diverse roles in measuring the standard of living/dwelling and its impact on residential property value. They noticed a rapid deterioration of housing situation in the Nigerian urban centers due mainly to population explosion and massive rural-to-urban migration. Housing condition and environmental qualities matter to human life as they play role in assimilating waste products and providing life support amenities such as forests provide fresh air, water catchments Areas and prevention of soil erosion (Turner 2015).

Despite the essential role played by environment resources in developing countries little is known about the economic development (Turner, 2015). Furthermore little is known about the impacts of markets forces and policy interventions on environmental management and environmental effects of development and programmes. Research in all these areas is proceeding, but progress remains slow given the complexity of the problems and our failure to address them adequately in the past (Turner, 2015). Development of industries and increased human population has greatly led to environment deterioration, which in turn affects the quality and property value of settlements. The Nigeria population is growing at the rate of approximately eight percent per annum, it is estimated that about 70 percent of populations live in poor, unplanned settlements (http:web.mit.edu/ urbanupgrading) Until mid- 1990 the overall urban environment had deteriorated to the extent that less than 5 percent of solid and liquid waste was collected (Nkya 2011) Lack of knowledge of the people towards the importance of environmental quality, has lead to deterioration of the environment to such an extent that in some it has decreased property values and rents of houses. 

According to Norman (1982), physical attributes and locational influences can be described as “Fundamental factors” of the property because all users of such property get utility or disutility from these fundamental factors over their expected tenure. While physical attributes include building area, type of structure and all that is attached thereof, locational influences are off-site neighbourhood attributes like healthcare facilities, parks, schools etc. Therefore real estate value will be locational dependent due to the attributes with respect to specific desirable services. Since locational influences on the value of residential property can come up from a number of sources such as accessibility to shopping centre, air quality, drainage system availability, pollution, noise, security, and availability of refuse disposal facilities etc. This research work examined the impact of housing condition and environmental quality on residential property value in Kofar Hausa, Keffi Metropolis.

1.2.      STATEMENT OF THE PROBLEM

Most Nigeria‘s major cities have been experiencing rapid urbanization and rapid development due to urban-urban or rural urban migration which have resulted in the failure of urban infrastructure and services have failed to keep pace with this growth. In addition to rising urban poverty, there is an increased urban environmental problems. These challenges are poor solid waste management, uncontrolled housing and neighbourhood development, flooding, traffic congestion, poor state of the urban physical environment and rising crime rates have been documented (Ugwuorah, 2002; Mchi, 1997). Obinna, Owei and Mark (2010) have also noted the deplorable housing, inadequate space, and absence of basic services in the informal settlements of the city. This state of affairs triggered the desire to examine the impact of housing condition and environmental quality on residential property value in Kofar Hausa, Keffi Metropolis.

1.3       AIM AND OBJECTIVES OF THE STUDY

The aim of this project is to examine the impact of housing condition and environmental quality on residential property value in Kofar Hausa, Keffi Metropolis.

The specific objectives are as followings:

1. To identify the housing condition and various environmental problems common in the study area.
2. To evaluate the relationship between housing condition, environmental quality and residential property values.
3. To ascertain residents rating of housing condition and environmental qualities in the study area
4. To examine the impact of housing condition and environmental qualities on residential property values in the study area

1.4       RESEARCH QUESTIONS

1. What are the various housing condition and environmental problems common in the study area?
2. What are the relationship between housing condition, environmental qualities and residential property value?
3. How do the residents rate housing condition and environmental qualities in the study area?
4. What are the impacts of housing condition and environmental qualities on residential property values in the study area?

1.6       SIGNIFICANCE OF THE STUDY

This study examines the impact of housing condition and environmental quality on residential property values. The management of the environments and neighbourhood is the collective responsibilities of both the government at all levels and the property owners, thus the findings of this study would be utilized by the government at both federal, state and local government through their various ministries or agencies such as the ministry of environment, education, health and information as it will impact on them the relevance of maintaining a good and quality housing condition and environments. The study will be also be beneficial to these ministries in the area of policy formulation and formulating laws that will promote good environment and neighbourhood which will be beneficial to human health and protect  the environment.

The citizenry, estate valuers and managers and professionals in real estate sector will also benefit greatly from this study, as the study will reveal how a person’s carefree attitude about the environment can be costly not only to himself but to others. Non-governmental organization in the areas of health and environment will also benefit from the result of this study. This study will guide them in the areas production and distribution of educational materials to the public to enlighten them about the impacts of housing condition and environmental quality with regards to its impact on property value.

The information will go along way in helping other research in the field as it will contribute to available literatures on housing condition and environmental quality.

1.7       SCOPE OF THE STUDY

The study is delimited to the examination of the impact of housing condition and environmental quality on residential property value. The study intends to investigate the housing condition and environmental quality, and the relationship between housing condition, environmental quality and residential property values. The geographical scope of the study is Kofar Hausa, Keffi metropolis.

1.8       OPERATIONAL DEFINITION OF TERMS

Housing: Housing refers to houses or buildings collectively; accommodation of people; planning or provision of accommodation by an authority; and related meanings. The social issue is of ensuring that members of society have a home in which to live, whether this is a house, or some other kind of dwelling, lodging, or shelter.

Environment: The sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage.

Environmental Quality: Environmental quality is a set of properties and characteristics of the environment, either generalized or local, as they impinge on human beings and other organisms. It is a measure of the condition of an environment relative to the requirements of one or more species, any human need or purpose.

Neighbourhood: A neighbourhood is a geographically localised community within a larger city, town, suburb or rural area. Neighbourhoods are often social communities with considerable face-to-face interaction among members.

Attributes: A characteristic or feature of a product that is thought to appeal to customers.

Property Value: property value according to Millington (2017) is the money obtainable from a person willing and able to purchase property when it is offered for sale by a willing seller, allowing for reasonable time for negotiation and with the full knowledge of the nature and uses which  the property is capable of being put.

1.9       THE STUDY AREA

Keffi Local Government Area is largely an urban Local Government Area and Keffi town is one of the oldest towns in Nasarawa state that enjoy the eminent position of being a foremost centre of history. Metropolitan Keffi currently has ten political wards namely – Tudun Kofa, Gangaren Tudu, Yara, Goriya, Liman Abaji, Ungwar Rimi, Iya I, Iya II, SabonGari and Jigwada, these serve as spatial reference points for analysis. In the high density areas, there are usually large cluster of old houses with high concentration of households and indecent surroundings. The situation becomes even worse with the ever-increasing migration of low or no income earners from the surrounding rural neighborhoods into the town. This has resulted among other things, in the increase of petty businesses, which competes for accommodation with households in the same buildings and therefore, has aggravated the problems of shorter dwelling units.

Similarly, houses within the high residential areas reflect the images of their inhabitants, particularly in the complete separation of women, and in directing day time activities toward an inner court. The basic emotional needs of utmost to the residents, the need for privacy, and family entertainments. These are emotionally connected, and were taken into consideration to a great extent in terms of the physical layout of the houses. The physical and mental health as well as the social well-being of the inhabitants of low and medium density areas are therefore, by virtue of their relative cleaner, more refined and quieter living environment, generally more conducive to a better quality of life, than those of their fellow citizens residing in the high density areas. Abubakar (2000) observed that many potentially harmful materials such as solvent and pesticide containers, medical waste and asbestos debris, even though prohibited are already present in the collected waste in Keffi. Keffi is located between Latitude 8°50’55” N and 7°52’25” E or 8.84861 and 7.87361 (in decimal degrees).

Transportation network in urban Keffi is fair being limited to vehicles and motor cycles. Roads in Keffi was categorized into the following hierarchy: Arterial and collector roads that pass through the town from Akwanga (with only one lane) to Abuja (with two lanes each) and also foot/cycle paths, they are the intercity roadways linking the city to neighboring states, and they also form the boundaries of the phases of the city. They also receive traffic from local streets and deliver to the access roads which are meant to serve the residential areas; Local streets have single two lane carriageways with foot/cycle paths,; and Access roads with single two lane carriageways and cycle paths. The mass-Transit System for moving large numbers of people into Keffi center and out again is mainly the buss (vehicle) system with the main transportation terminal being motor parks and the Keffi central market, these are the locations where buses (vehicles) originate and terminate.  

The main source of water supply to Keffi is the River Mada Water Works at Gudi. It has a maximum capacity of supplying water to a population equivalent of 350,000 inhabitants which means that it is not enough to meet the ultimate city requirements. The transportation of water to Keffi is by gravity through a series of water tanks around the periphery of the city. This is a unique system because the clear water reservoir of the treatment plant is elevated enough to facilitate the gravitational flow right to the city. However, there are areas in Keffi where the water pressure is too low due to head losses and for those areas booster stations would be necessary. Municipal solid waste in Keffi is composed of paper, plastics, food, yard wastes, glass, metals, and wood among others.

PHYSICAL CHARACTERISTICS

1. Geology and Relief

The landscape of Keffi form part of the low plains of the Benue trough. This plain is believed to be tectonic in origin and is lying in depression. The Maloney Hill in Keffi is of historical significance. Keffi is drained by numerous fast-flowing streams that take their sources from Jama’a catchment in Kaduna State and flow into the River Antau.

Keffi is well-endowed with both renewable and non-renewable natural resources. The major non-renewable resources include the constructional materials such as gravel, sand, clay and earth. Sand is obtained both on land and from river beds. The major renewable natural resources include water resources, a wide variety of economically important timber species, pole-wood, fuel-wood; edible vegetables, fruits, nuts and seeds; medicinal plants, palm wine and other palm products; fibers; and tannin.

2. Climate of the Study Area

a) Pattern of Mean Rainfall in Keffi 

Keffi is characterized by a dry season of seven months or more, usually between October/November and April/May. Data from the National Meteorological Department, Lafia, 2015 suggest that the mean annual rainfall distribution in Keffi ranges from 1000mm to 1200mm. The minimum rainfall received during the dry season ranges from less than 50mm to 100mm.

Similarly, the data further shows that, the mean onset date of rains in the area is currently before 10^th of April (for early onset), the late rains generally come before 20^th April. On the average, rains terminate in October, but sometimes may extend beyond November 15^th. However, the mean cessation dates is generally between 17^th and 27^th October. The mean length of rainy season (LRS) ranges from more than 150 days to less than 180 days.

b) Sunshine

The duration of sunshine per day, combined with solar radiation intensity are two important parameters that determine the drying power of the ambient air. Keffi enjoys high sunshine hours of 8-9 hours per day. Hence daytime lengths are on the average about 8.5 hours for most of the dry season; this may mean increase in evaporation. The high evaporative power of between 16 and 20 millimeter of water in November also suggest a very high drying power. Extreme dryness is usually associated with values higher than 20 ml when relative humidity (RH) is 40% or below. The mean monthly temperature ranges from 25.7⁰ in August to 30.9⁰ in March. 

c) Effective Temperature Factor

The rate of all developmental processes is directly regulated by temperature, being accelerated when temperatures are raised and retarded when they are lowered.

SOCIOECONOMIC CHARACTERISTICS

1. Socio-economic Activities

Human activities in Keffi includes: primary – fishing and farming, quarrying, and river sand mining have become major production activities in Keffi; secondary – manufacturing, and various traditional industrial activities (weaving, carving, dyeing, smiting and so on) found in the informal sector of the economy; and tertiary – commerce, administration, banking and finance, information, transportation and local traditional marketing through the traditional rural periodic markets and the urban markets. There has been a quite modest improvement in the construction of new roads within Keffi by the present administration under Governor Umaru Tanko Almakura. Generally, inadequate transport system has been a major constraint on social and economic development in Keffi.

• Demographic Characteristics

Studies by the Abubakar (2006), observed that population growth in Keffi is influenced by declining mortality and stable high fertility level as well as influx of people because of its proximity to FCT Abuja. This increase had been further influenced by factors such as improved environmental sanitation, raising income level, peace and political order. Similarly, decline in mortality rate, increase in fertility had (still is) consistent in Keffi.

Inter-marriage, early marriage has been important factors in high fertility in the Keffi. Apart from natural population increase, Keffi also experiences a relatively high level of immigration as a result of movement of the seat of Federal Government from Lagos to Abuja. Until recently migration in Keffi followed the common developing country pattern of young people leaving their rural villages to seek work in larger urban centers. Thus Keffi has an average population growth rate of about 3% which is higher than the national average of about 2.5 per cent (NPC, 2015). Keffi is home to Nasarawa State University Keffi, School of Health Technology, and a large number of primary and secondary schools among which is Government College Keffi.