Determinants of Housing Affordability in Urban Areas of Nigeria: Evidence from Ibadan and Enugu

Housing affordability is a multidimensional economic and social challenge in Nigerian cities, shaped by construction costs, land markets, mortgage finance conditions, and household income dynamics. This study investigates the determinants of housing affordability in urban Nigeria using Ibadan (South West) and Enugu (South East) as comparator cities. A quantitative design was employed, with 210 urban households, estate developers, and housing finance professionals completing structured instruments. Hedonic pricing models, principal component analysis, and comparative analysis across the two cities were applied. Findings show that land costs account for 28% and 34% of total housing development costs in Ibadan and Enugu respectively, making them the single largest affordability driver alongside construction material costs. Mortgage accessibility is limited to approximately 12% of urban households in both cities due to high interest rates, collateral requirements, and income informality. The study finds that the income-to-housing-cost ratio in Enugu is marginally more favourable than in Ibadan, reflecting land market differences. Government housing interventions have reached less than 4% of the target low-income population in both cities. Unlike prior studies that treat affordability as a single measure, this research employs a multi-factor model that captures interacting determinants. Recommendations address land administration reform, construction cost reduction through local materials, and inclusive housing finance. Keywords: housing affordability, urban housing, Ibadan, Enugu, construction costs