Housing construction materials and house rent trends in Ede, Nigeria

Daniel, I. D. ORCID: https://orcid.org/0000-0003-0749-3111, Chiwuzie, A., Guyimu, J., Olusola, A. A. and Olusegun, J. O. (2021) Housing construction materials and house rent trends in Ede, Nigeria. Pacific Rim Property Research Journal, 27 (3). pp. 205-216. ISSN 2201-6716 doi: 10.1080/14445921.2022.2045538

Abstract/Summary

The study examines the relationship between housing construction material prices and house rents in Ede town, Nigeria, from 2002 to 2020 to guide investment decisions. The research was conducted using a questionnaire survey. The study’s population consists of landlords, estate surveyors and valuers, real estate agents, and building material suppliers/sellers in the study area. Data obtained was analysed employing descriptive and inferential statistical tools. The results showed that house rents and building material prices maintained an upward trend within the study period. Changes in house rents correlated with some percentage changes in the prices of selected building materials (cement, roofing sheet, reinforcement bar, sand and tiles). However, all the correlations are not statistically significant at 0.05 level. The regression model’s coefficient of determination R-squared revealed that building material costs explained about 43.6% of the variation in house rents. This result implies that factors other than building material costs may influence the changes in the house rents. The study’s finding will be valuable to stakeholders making real estate investment decisions in the study area and similar developing economies in general.