Determining factors of housing price in Ghana, the case of Kumasi

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The study examines the determinants of housing prices in Ghana, with a specific case study of housing prices in Kumasi. Specifically, the study analyzes the characteristics of various housing types, their relations with housing prices, and the effect of housing characteristics on demand and supply of occupied dwelling units in Kumasi Metropolis. In addition, it identifies the extent to which inadequate housing attributes or characteristics results in social, health, and economic issues. The Hedonic model is used to identify which characteristics of housing is the most significant at each point in time and strongly determines housing price. The study establishes with a graph how inadequate housing attributes pose a challenge to households’ health and social behaviour, and in addition financially puts a burden on both households and the public at large. The study recommends among others that policy makers and housing developers should gear their attention to building low cost housing with the adequate and necessary housing attributes. The main construction material is cement and concrete which increases the price of housing as developers increase the characteristics of housing; it is recommended that other quality construction materials are used. It further recommends that policy makers on housing should focus on pursuing various affordable housing programmes and place more importance on housing characteristics or attributes to raise utility for certain attributes. It is recommended that the hedonic model be used by housing policy makers to access household willingness for some characteristics of housing which will reflect the real price they pay.
A Thesis Submitted to the Department of Economics Kwame Nkrumah University of Science and Technology, Kumasi-Ghana, In Fulfillment of the Partial Requirement of the Degree Of Master of Science in Economics College of Social Science