Slum Real Estate: The Low-Quality High-Price Puzzle in Nairobi's Slum Rental Market and its Implications for Theory and Practice

Sumila Gulyani and Debabrata Talukdar

World Development, 2008, vol. 36, issue 10, 1916-1937

Abstract: Summary This study of 1755 households in Nairobi's slums challenges the conventional belief that slums offer low-quality low-cost shelter to a population that cannot afford better standards. In Nairobi, slums provide low-quality but high-cost shelter. Although slum residents pay millions of dollars in rents annually, and better quality units command higher rents, very little is being re-invested to upgrade quality. To resolve the challenge that the Nairobi puzzle poses for theory and practice, we develop a new analytical framework for understanding quality of living conditions. Improving conditions in Nairobi's slums requires, we argue, two simultaneous interventions: alteration of the tenure mix to enhance owner occupancy and infrastructure investment.

Keywords: informal; housing; markets; tenure; infrastructure; slum; upgrading; quality; Kenya; Africa (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (39)

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