Examining the Determinants of Housing Investment Behaviour Among Urban Households in South East Nigeria

This study examines the behavioural determinants of housing investment decisions among urban households in South East Nigeria, applying behavioural economics frameworks to understand why housing investment patterns in the region diverge from predictions of conventional neoclassical investment models. South East Nigerian households, particularly those with diaspora connections, exhibit distinctive housing investment patterns characterised by strong preferences for ancestral hometown investment, high investment rates relative to income, and apparent overweighting of non-financial status and cultural motivations. A mixed-methods design combines a quantitative survey of 300 urban households with housing investment experience across Enugu, Onitsha, and Owerri with qualitative in-depth interviews with 40 purposively selected investors. The survey measures investment decision factors, risk perception, cognitive biases, and investment outcomes. Structural equation modelling tests hypothesised relationships between behavioural constructs and investment decision patterns. Findings confirm that Igbo cultural identity and social status signalling are significant positive predictors of rural hometown housing investment even among urban residents, operating alongside financial investment motives rather than as substitutes. Loss aversion in the sense of fear of social exclusion from community if not owning ancestral property is identified as a significant emotional motivator. Overconfidence in self-assessed construction management ability leads to systematic cost overruns among self-building households. The study argues that housing policy and estate advisory services for South East Nigeria must incorporate cultural motivation dimensions. Recommendations include culturally sensitive financial planning tools for diaspora-connected investors. Keywords: housing investment behaviour, behavioural economics, Igbo culture, South East Nigeria, investment decisions.