Determinants of housing choices and affordability in the Ghanaian Real Estate Industry

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Housing affordability has become an issue in most countries worldwide. This has given rise to lots of research into the issue. However, in Ghana, there are lots of property overhangs despite the rise in private real estate development. Homebuyers have a perception on the kind of building they want whiles developers are producing buildings based on their perspectives. Most individuals have concluded on the fact that property prices in Ghana are high without knowing the components that determine the final price of real estate units. Most literatures in Ghana about housing affordability focus on economic factors and policies, not taking into consideration the determinants that influence the choice of homebuyers. This study seeks to add knowledge by identifying the most influential factors that inform homebuyers’ decisions when they want to purchase a house and also identify the factors that influence house prices in the real estate industry. This will help bridge the gap between demand and supply of housing units whiles providing real estate developers with a criteria to ascertain what homebuyer’s prefer and incorporate them into their housing framework in order to address their needs. Seventeen (17) choice determinants were used as the criteria to identify the determinants. Convenience sampling technique was used to administer hundred (100) questionnaires to middle and high income Ghanaians with a total of eighty-seven (87) returned to ascertain the choice determinants whiles the price determinants were also achieved through the administration of hundred (100) questionnaires to Real Estate firms with thirty-six (36) retrieved. The determinants were analysed and ranked based on their level of importance perceived by respondents.
A thesis submitted to the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the Award of Master of Science in Construction Management.
Determinants of housing choice, Affordability of houses