Supply Side Aspects of Residential Housing for Low Income Earners in Kenya

Gayline Vuluku () and James Gachanja ()
Additional contact information
Gayline Vuluku: Federal Reserve Bank of Atlanta and Georgia State University
James Gachanja: Kenya Institute for Public Policy Research and Analysis

Research in Applied Economics, 2014, vol. 6, issue 3, 271-286

Abstract: The need to have shelter is indispensable to humanity. Access to adequate and decent housing units decreases with the increase in population, scarcity of fixed assets like land, escalating house prices and the rising cost of living. The study uses time series data, 1980-2011, drawn from the Kenya National Bureau of Statistics to determine the factors that would be used to stimulate the low cost housing market in Kenya. The Instrumental Variable estimation technique is applied for this study using location specific factors for Mombasa and Nairobi. Regression results indicate unique results for the two towns. Whereas Nairobi had the lending rate, the cost of supply, the plinth area, labour and input cost index, inflation and the real interest rate being important in determining supply Mombasa reported the coefficient, cost of building a house, commercial bank rate and their lagged values as important factors in determining supply. At the same time inflation, treasury bill rate and plinth area were important in explaining supply of residential housing.

Keywords: Employment-to-population ratio; Labor force participation; Employment rate; Unemployment rate; Full employment (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.macrothink.org/journal/index.php/rae/article/view/6364/5210 (application/pdf)
http://www.macrothink.org/journal/index.php/rae/article/view/6364/5210 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mth:raee88:v:6:y:2014:i:3:p:271-286

Access Statistics for this article

Research in Applied Economics is currently edited by Amy Li

More articles in Research in Applied Economics from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).