INSTITUTE OF URBAN

DEVELOPMENT STUDIES

DEPARTMENT OF URBAN LAND MANAGEMENT & INFORMATION

SYSTEM
(The case of Harar city)

Residential Housing
Problem
PREPARED BY
NUREDIN ABDUREHMAN(IDNo ULMISBR 0044-04
Advisor:-ASSEFA BITAW (Ato)

A senior essay proposal submitted to Ethiopian Civil Service University,

department of urban land management & information system partial fulfillment
of the requirements for the Award of a Bachelor degree in urban land
management &information

March20,2015

Addis Ababa,
Ethiopia

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1.0 INTRODUCTION----------------------------------------------------------------------------------------------------------------- 3
1.1. BACK GROUND OF THE STUDY.----------------------------------------------------------------------------------------------- 3
1.2. STATEMENT OF THE PROBLEM------------------------------------------------------------------------------------------------- 4
2. OBJECTIVES OF STUDY------------------------------------------------------------------------------------------------------- 4
2.1. GENERAL OBJECTIVE.--------------------------------------------------------------------------------------------------------5
2.2. SPECIFIC OBJECTIVE------------------------------------------------------------------------------------------------------------- 5
2.3. RESEARCH QUESTIONS.-------------------------------------------------------------------------------------------------------- 5
2.4. SIGNIFICANCE OF THE STUDY.-------------------------------------------------------------------------------------------------- 5
2.5. SCOPE OF THE STUDY----------------------------------------------------------------------------------------------------------- 6
3. DESCRIPTION OF THE STUDY AREA------------------------------------------------------------------------------------------- 6
4. LITERATURE REVIEW------------------------------------------------------------------------------------------------------------- 7
4.1. DEFINITION AND CONCEPTS OF URBAN HOUSING-----------------------------------------------------------------------------7
4.2. WORLD HISTORICAL DEVELOPMENT OF URBAN HOUSING--------------------------------------------------------------------8
4.3. HOUSING IN THE ETHIOPIAN CONTEXT.--------------------------------------------------------------------------------------- 8
4.3.1. Historical development of urban housing in Ethiopia.----------------------------------------------------8
4.3.2. Urban housing policy trend in Ethiopia-----------------------------------------------------------------------9
4.3.3. Current situation of urban housing in Ethiopia------------------------------------------------------------10
4.3.4. The role of housing for the overall development of urban center------------------------------------11
4.3.5. Indicators of housing problem---------------------------------------------------------------------------------12
4.4. TYPES OF HOUSING PROVISION PROGRAM-----------------------------------------------------------------------------------12
4.4.1. Government/Public housing-----------------------------------------------------------------------------------12
4.4.2. Private housing---------------------------------------------------------------------------------------------------- 12
4.4.3. Cooperative housing--------------------------------------------------------------------------------------------- 13
4.4.4. Condominium housing------------------------------------------------------------------------------------------- 13
4.4.5. Self-help housing-------------------------------------------------------------------------------------------------- 13
4.4.6. 2.6.6 Low-cost Housing------------------------------------------------------------------------------------------ 13
4.4.7. Other housing programs---------------------------------------------------------------------------------------- 14
4.5. FACTORS CONTRIBUTING FOR HOUSING PROBLEM--------------------------------------------------------------------------14
4.6. HOUSING NEED, DEMAND AND SUPPLY-------------------------------------------------------------------------------------14
4.6.1. Housing need------------------------------------------------------------------------------------------------------- 14
4.6.2. Housing demand-------------------------------------------------------------------------------------------------- 15
4.6.3. Housing supply---------------------------------------------------------------------------------------------------- 15
5. EXPERIENCES OF HOUSING PROVISION------------------------------------------------------------------------------------15
5.1. WORLD EXPERIENCE IN HOUSING PROVISION--------------------------------------------------------------------------------15
5.2. HOUSING PROVISION EXPERIENCE IN AFRICA--------------------------------------------------------------------------------16
5.3. HOUSING PROVISION EXPERIENCE IN ETHIOPIA------------------------------------------------------------------------------16
5.3.1. Housing provision experience in Addis Ababa-------------------------------------------------------------17

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1.0 Introduction
This research proposal contains three parts, the first part deals about the overall objective and
the nature of the study; the second part reviews different related literatures and experiences of
different countries in relation to residential housing problem; and the last part deals with how
the research conducted using different approaches and methods.

1.1. Back ground of the study.

Most urban center around the world particularly in developing countries are facing series
challenges with regard to filling gap between demand and supply of urban housing or solve
problems related to housing shortage and related service. The challenge is not only how to fill
gaps between demand and supply of urban housing, but also how to assure sustainable
housing development. Hosing is one of the most essential human material needs, yet no
country has been able to achieve the housing demand in complete equilibrium with its supply.
At this point it should be recognized that “need” is not necessarily the same as “demand”; the
former is an essential requirement, while the latter is the quantity or attribute of a product that
can be afforded at a price (Abebe Z, 2006).

In Ethiopian urban center in general and in Harar city in particular, there is serious shortage of
urban housing and related services due to a number of factors including rapid growth of urban
population, rural-urban migration, city to city migration increasing prices of building material,
shortage of skilled labor and land, lack of access to housing finance, low saving capacity of
the people and limited private and government capacity to invest in housing.

Apart from serious shortage of housing units the physical condition of the existing has been a
serious concerns. Deteriorated over the year. This was more serious in slums and squatter
settlements of urban areas. Though recent reliable data pertaining slum and squatter
settlements are not available, some studies indicate that the number of urban population living
in slums is very high.

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 1.2. Statement of the problem
Residential housing problem is common in most urban centers of developing countries; this is
mainly resulted from rapid urbanization accompanied by high population growth (i.e. massive
rural to urban migration and high fertility rate).
Although the government of Ethiopia has been taking a number of measure to alleviate the
problem related to housing in main cities, residential housing problem is a still remain serious
issue due to shortage of affordable housing to satisfy the ever increasing housing demand.
Apart from low income level of the people, lack of access to housing finance and limited
capacity of the private sector to investment in housing makes the problem complex and
challenging to alleviate. Harar city is one of urban centers of the country which residential
housing problem persist. Most of the problems regarding residential housing in the city are
getting worse – the reason being that the existing residential housing unite has been
deteriorated, lack of sufficient housing facilities and the gap between demand and supply.
Unless this problem is resolved the overall socio-economic development of the city will be
hampered and creates socio economic problem in the city, such as homelessness, robber as
well as health implication. In addition, the low income group of the society will be highly
affected by the problem. .

2. OBJECTIVES OF STUDY

2.1. GENERAL OBJECTIVE.

The main objective of this study is to assess the different causes of residential housing
problem in Harar city and to recommend the possible solution for the problem.

2.2. Specific objective

The specific objective of this study include:
 To investigate the degree of residential housing problem in the city.

 To assess the land provision system of the city for residential housing

 To identify the major factors aggravating residential housing problem in the city

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  To evaluate the actions of regional state, NGOs and CBOs to the existing residential
housing problem

 To recommend the possible solutions for the improvement of residential housing in

the city.

2.3. Research Questions

This study is mainly focused on to answer the following key questions.
 What is the extent of the residential housing problem in the city?

 What are the land provision systems of the city for residential housing?

 What are the main factors that cause residential housing problem in the city?

 What actions has been under taken by different actors including city municipality to
minimize the problem of residential housing?

 What is the mechanism to improve the residential housing problem of the city?

2.4. Significance of the study

The study is excepted to benefit the Harari regional state by identifying the residential
housing problems currently the city. . It will have a high value to the regional state to make
proper decisions regarding the provision of residential housing. In addition, the study will
forward possible solutions to improve the problem of residential housing in the city and it
contribute to fill the knowledge gap essential for academic purpose as well.

2.5. Scope of the study

Thematically the study focuses mainly on residential housing unit, and the study will going to
examine the existing housing problem situation issues, such as assessing the gap between
existing residential housing supply and demand, housing unite condition, exploring the major
factors for residential housing problem in the city, and to suggest measures that will help to
improve the accessibility and affordability of residential housing to the existing residence and
the ever growing population in the city. Spatially the study is limited to Harari people’s
regional state city of Harar in selected wareda or kebele administration.

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3. Description of the study area
Harari People's National Regional State is one of the nine regional state who is the homeland
of the Harari people. Formerly named Region 13, its capital city is Harar. It has the smallest
land area of the Ethiopian regional states. Based on the 2007 Census conducted by the Central
Statistical Agency of Ethiopia (CSA), Harari region has a total population of 183,415, of
whom 92,316 were men and 91,099 women. This region is the only region in Ethiopia where
the majority of its population resides in urban area: 99,368 or 54.18% of the population are
urban inhabitants. With an estimated area of 311.25 square kilometers, [citation needed] this region
has an estimated density of 589.05 people per square kilometer. A total 46,169 households
were reside in the region, which results on an average a household size of 3.9 persons per
household (with urban households size having on average 3.4 and rural households size 4.6
people). Ethnic groups in the region include Oromo (56.41%), Amhara (22.77%), Harari
(8.65%), Gurage (4.34%), Somali (3.87%), Tigray (1.53%), and Argobba (1.26%). Languages
spoken include Oromiffa (56.84%), Amharic (27.53%), Harari (7.33%), Somali (3.70%), and
Gurage (2.91%). The majority of the population in the region is a fowlers of Muslim with
68.99%, followed by Ethiopian Orthodox at 27.1%, 3.4% Protestant, and 0.2% are followers
of other religions.
Harar is the capital city of Harari people regional state and it is located at 526km south east of

Addis Abebe, between 09.100 and 09.250 longitudes to the East and between 42.040 and

42.220 latitude to the North. Harar city is the only city that is found in the Harari National

Regional State. It is located at420 7’0” latitude and 99,368 or 54.18% people in urban area
(CSA population census, 2007) and it accommodate 19.54 square km urban land area. Harar

has temperate weather condition with 280c annual average temperature.

4. Literature review
4.1. Definition and concepts of urban housing
There is no general single definition for the term housing. Because housing unit and services
varies from country to country and from place to place, depending on the physical condition
and level of cultural and economic development (Thatcher, 1974 cited in kassaw kebede

6
work, 2004). As such the universal human right about housing states that “everyone has the
right to have a standard of living adequate for the health and wellbeing of himself and his
family including….housing”(Human rights (1948:article 25).
According to UN adhoc group of experts on housing and urban development the term housing
defined in such a way that “The physical environment in which families, the society basic unit
must develop from perspective of family, housing is not “shelter” or households facilities
alone, but comprises a number of facilities, services and utilities which link the individual and
his family to the community of the region in which it involves (Mustafa, 2002).
A simple definition of housing is that it is a physical structure designed to serve as a place of
abode. A more wide definition would consider housing as one which constitutes: the
dwelling; the related infrastructure (access roads, water and electric supply, sewerage
network, etc) and community facilities (such as schools, health center, etc) (Tilahun, 1996).
Michael (1993) also attempted to define the term housing as “The residential environment
consists of not only the dwelling unit but also site and setting, neighbors and community,
municipalities and public services, habitability and accessibility, rights and responsibilities,
costs and benefits, yet housing is even more than the residential environment, for it is only in
relation to those who inhabit and use it that housing has meaning and significance not only
physical and economic, but emotional, symbolic, and expensive” (kassaw, 2004).
Generally the word housing is used both about the process and the product of creating shelter
together with its full services and facilities for human beings.
A large share of human settlement is devoted to the production of housing. This effort has to
be well though and fully financed venture, since housing must be durable to with stand the
weather and the ravages of use over time. The production effort also has grown in complexity
due to fact that the sanitary, cooking and other essential day to day facilities have become an
integral part of housing as civilization advance. Housing, therefore, is major form of
investments which has a major role in economic development.

4.2. World Historical development of urban housing

The industrial revolution, which began in the 1890, produced much unplanned city
development around the world. Thousands of people moved to cities to find work, and
builders put up almost any kinds of housing to meet demand. Many business facilities,

7
factories and residential houses stood side by side on narrow streets, block of tenement houses
appeared in large cities of United States, France, Great Britain, and other industrialized
countries (Nebil, 2001). The first housing law in the US was passed by New York City in
1867. The law sets minimum ventilation sanitation and safety requirement for tenements. This
was the beginning of introduction of standards in the housing sector.
By the 1900s a word housing shortage has exhibited mainly because of the population
increased and high concentration of the population in urban areas. The expansion of industry,
a shortage of construction works and lack of money for new housing also compounded the
housing shortage. In spite of stepped up housing construction new housing construction fell to
inadequate address the demand during world wars I and II, because builders lacked materials,
in addition as a result of the great depression of 1930s more families moved from rural areas
to cities causing series housing shortage (world book encyclopedia, vo1.9, P. 393).

4.3. Housing in the Ethiopian context.

4.3.1. Historical development of urban housing in Ethiopia.

The urbanization process in Ethiopia started during the 5th century, AD, with the starting of
feudal era and followed with the consolidation of the feudal social and economic status led to
the foundation of Gondar in 17 century. Richard pankrust has stated “the emergence of great
city may perhaps be attributed, in part, to the Ethiopian renaissance which had followed, in
part, to the stability of government and in part of the discover of mortar”
In general during Gondar era 1704-1936 handicrafts, trade, agriculture, art and building
construction flourished, commodity production began and this led to the foundation for the
division of labor between country and town. Therefore, the history of urban housing
development in Ethiopia is also related to this urbanization history. However, the modern
housing development is more developed during the five years Italian occupation. (Terfe,
2002 as cited Endrias 2003).

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 4.3.2. Urban housing policy trend in Ethiopia
In Ethiopian case in terms of policy response to housing: Coming to Ethiopian urban housing
situation (refer to the past and current country housing policies), we can see that:

The Haile Silases regime:- had left housing for the private developers, mainly because of
dominance of monopoly of urban land by the feudal land lords only around the end of the
regime, there were some attempts of direct government involvement in constructing the so-
called low-cost houses. Houses were built on contracted land on a temporary tenancy bases.
Therefore, the role of government was limited to regulate the urban plan and provide building
permits.

At the Derge regime:- beyond the nationalization of urban land and the so called of extra
houses, government directly involved in the construction and production of rental houses
through R.H.A and municipalities, provided free land for housing builders at different level
and institutional support for house builders, through housing co-operatives focusing on low
and middle income groups. However around the end of the regime, because of the new
economic policy (mixed economy) government support had terminated and left for the free
market.

Current government: the free market and given emphasize to support for the real estate, low
cost housing (condominium) and private developers. In addition, the current government
started to give appropriate attention for housing and urban development sector since its 2 nd 5
years national development plan that is, since 2001. One of the current approaches of the
government is decentralizing all urban development activities for effective decentralization,
legal and institutional frame works are established for the four major regional states and for
Addis Ababa and Dire Dawa city (which is under completion) in order to overcome the
housing problems of these regional states, appropriate institutional arrangements are made.

4.3.3. Current situation of urban housing in Ethiopia

The housing shortage in Ethiopian cities is a result of the interaction between housing demand
and housing supply. On the demand side the existing deficit in Addis Ababa is almost 30,000
units. In large regional towns such as Adama and Bahir Dar the deficit ranges from 8000 to
10,000 units representing between 25 and 50 percent of the total housing stock. Given the
current population growth rates between 4 and 6 percent future housing needs will be

9
substantial over the next 10 years, as such every 19,000 households per year will require new
housing in the capital city. Yearly requirements in large towns range from 1000 to 1500 units.
The cumulative unit requirements in the 10 regional capital cities over the past ten years
(1994 -2004 period) are 334,570 units. Housing supply lags behind current and future needs.
Production is impeded primarily by a severe shortage of serviced residential plots and poor
condition of the housing stock
The condition of the housing stock in Ethiopian cities is generally poor. Thirty four percent of
units in the regional capitals are in need of major structural repair, and 6% are fit for
demolition. The stock in Bahir Dar and Adama is in particularly critical condition 45% and
38% of units respectively are in poor condition, and 19 and 20 percent are irreparable. Other
towns with high rates of structurally damaged housing are Addis Ababa (37%), Awassa
(42%), and Gambela (52%).
The poor condition of the housing stock is the result of existing tenure arrangements and
housing managements systems. Forty five percent of units in the regional capitals are owner-
occupied; the remainders are rented. Since renting households will not benefit financially
from investing in the units they live in, they generally choose not to make improvements. One
of the reasons for the poor quality of housing stock is building practice. The large majority of
houses in Ethiopian towns (two-thirds of the stock in the regional capitals) are made of mud;
many units lack proper foundations; Roofs are often constructed of water permeable material;
walls are rendered in mud without a finish coat of cement plaster. As a result, these structures
are easily penetrated by water during the rainy seasons in much of Ethiopia. Water penetration
and resulting damage means that mud houses i.e most houses in urban areas last only 30 years
on average.

Housing affordability in urban Ethiopia today is becoming extremely difficult for majority of
the population. Housing cost to income rations are 13.9 for mud units and 29.2 for concrete
block units, compared to an average of 4.7 for SSA and 4.8 for all low income developing
countries. Even when plots are leased from the government at the subsidized lease rate, only
one-third of households in the capital city can afford. One of the reasons for unaffordability is
that household incomes are low. The monthly median income in the capital city is birr 391 (us
$62). Households in large towns are slightly poorer, while residents of small regional capitals

10
have higher incomes. Expenditures on basic needs food and water consume between 45% and
65% of income in the regional capitals.
Low household income is complicated by a restrictive housing finance policy environment. In
the absence of long term sources of funding, private sector financial institutions are wary of
making long-term sources of funding. In addition private sector financial institutions are wary
of making long-term mortgage loans. To boost effective demand by increasing the
affordability of housing finance for new unit construction and renovation of existing units, it
will be necessary to bring potential risks in line with gains associated with mortgage lending.

4.3.4. The role of housing for the overall development of urban center
Housing is a key component of the urban economy. Housing investment typically comprise 2-
8% of the GNP and 10-30% of gross capital formation in developing country. In terms of
asset accumulation, housing is more important as its account for 20-50% of the reproducible
wealth in most countries. Housing is a key in put in economic, social, and civic development,
as such many housing related activities contribute directly to achieving broader socio
economic development goals. Housing investment is a major driver of economic growth.
Although there is no comprehensive data available in developing country, with better data
permits more precise estimates could have been developed for developing countries. However
the same overall effect is true in developing countries. In the United States, housing directly
contributes 14% of gross domestic product (GDP) and triggers another 6% on average in
downstream expenditures lending for housing helps develop primary and secondary financial
markets.
Despite the clear evidence of the linkages between housing and socioeconomic goals, many
policy makers and practitioners are not taking advantage. In many countries around the world
opportunities to achieve economic, social, and civic development goals through housing
related-initiatives are being missed. Good models include:
USAID’s housing guaranty program, which helped develop institutional and policy frame
works for low income housing, slum up grading, and neighborhood infrastructure; World
Bank programs to reform housing markets remove bureaucratic obstacles, and enable housing
production by private sector builders and developers.

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 4.3.5. Indicators of housing problem
All countries have indicators that specified the gross housing deficit. These were usually
based on census figures and involved subtracting the number of dwellings from the number of
households. In some countries indicators were more refined and gave the geographical
distribution of the shortage, the deficit as distributed through economic status groups, and
offered projections of the deficit. The UN department of economic and social affairs (1977)
discusses on further refinement of these indicators, and form economic and physical points of
view for better decision making. For instance, decision on where to implement program has
to be based on the two levels of rational system of priorities. The first is based on selection of
localities in which a housing program should be undertaken. This was done by indicators such
as population growth and the rate of economic growth for each locality. The second is a
priority system to define the target population. This includes indicators of per capita income,
overcrowding and dwelling condition.

4.4. Types of housing provision program

In developing countries, including Ethiopia, there are different types of housing provision for
the people in need. These housing schemes are undertaken by different actors in order to solve
housing problems. The different types of housing are examined below.
4.4.1. Government/Public housing
This type of housing is provided by government or city authority in an attempt to alleviate the
housing problem. The houses could be rented for government’s personnel or for the urban
poor/low income people who cannot afford to build houses.
4.4.2. Private housing
Private housing is a housing production by private affluent individuals or enterprises (real
estate developers) through this mechanism they are able to contribute towards housing
problem solution. In this category are grouped buildings of similar typology erected from
several families at the same time. These buildings are given by rent, sell and longer payment
period of loan. Sometimes some company owners build houses for their employees.
4.4.3. Cooperative housing
People sometimes form non-profit associations to plan, finance, build and manage the
building in which they live since some people cannot build and manage buildings
individually, they form association to meet their housing need which they can build and
manage together. When a cooperative society builds or buys an apartment, individuals buy

12
shares which entitled them to occupy and own apartment. They share the expense of
maintenance and improvement for the entire buildings.
4.4.4. Condominium housing
This type of provision resembles cooperative housing, except with one important difference.
In condominium is an apartment building that is owned in unique way. some portions of the
building are designated for individual ownership; these are the apartment or nonresidential
units. the common property of the building-areas that are not part of individual units. the
occupants each own their own dwelling units, and each has a share in the parts of the building.
If one or more occupants fail to meet their financial obligations towards to own units, the
other occupants are not affected.
4.4.5. Self-help housing
Self-Help Housing” involves groups of low-income families in building their own homes.
Each family is expected to contribute labor in building homes for each other. In addition they
are excepted to organize and manage those employed as well as their own in puts in to a
house. To the extent these inputs are unpaid in cash or in easily convertible goods; it is the
measure of the self-help effort. It is by receiving unpaid assistance from others person or
group become committed to provide similar service in return. This is considered self-help or
non-cash investment (World book encyclopedia 1992 vol.9 P. 390)
4.4.6. 2.6.6 Low-cost Housing
This type is much more concerned with the income of the borrowers than the cost of the
dwelling they choose to live in. This is because, it likely some of those living in low cost
houses are not among the income group. In order to provide this low cost housing design and
built affordable housing for low income group families.

4.4.7. Other housing programs

This type of housing program encourages the development of private housing for low income
families and provides cash allowances to enable low income families to rent housing on the
private market. Families receive an allowance to make up the difference between what they
can afford and the actual cost of housing in their area. Moreover, it provides mortgage
insurance to a non-profit organization that develops a project and it also insures loans to
private groups to provide housing for low and moderate income families.

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 4.5. Factors contributing for housing problem
Many factors are responsible for housing problem and particular shortage of supplies in less
developed countries among these factors as Bria and etal noticed “… income are reduced,
particular among low-income groups, housings costs and interest rate increase, especially
when the increase outpace any growth incomes and the general index of price; and utility
service and capital installation programmers are cut back in low income areas, where
population are perhaps increasing.”
According to nick devs, (1993:280 as cited Endrias 2003) factors such as migration to the
town, natural increase, declined income of house hold, high price of construction materials,
rigid urban planning system and limited sources of municipality revenue to finance housing
construction are responsible for shortage of housing supply in urban areas of less developed
countries.

4.6. Housing Need, Demand and Supply

4.6.1. Housing need
The assessment of housing demand is an important question for all developed or
Developing economies, for two reasons. The first one is to assure all citizens are fulfilling one
of the basic needs - quantitative and qualitative - that makes a decent standard of living
possible in the reasonably near future. The importance of this point of view is generally
shared. As a matter of fact, the need for an appropriate dwelling is considered a basic need as
crucial as alimentary and sanitary needs. The second reason notes the importance of building
industry, either as a powerful factor for labor force demand, or as a boost for the
industrialization of the country.
It is therefore understandable why every government devotes particular attention to the
housing issues either on the need or demand side, or on the financing of the supply and
demand. The concept of needs refers to the inherent duality of dwelling - that is, it is both an
economic goods- subject to the market laws as well as a goods, or social service whose
fulfillment depends on the support of the public operator and it resources. In this second
meaning it seems plausible to reason in terms of need [Abate, Picciotto 1983, p.85 Ricci,
1984,p.37].

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 4.6.2. Housing demand
Housing demand is the concept of need tempered by the ability to pay. It is backed up of
purchasing power (Mc Grie, 1981:8 as cited Endrias, 2003). Hetman and valiant (1988:6-7),
have also noted that, housing demand is ability of either to consume or the state to pay for
housing of decent quality. Accordingly the demand for housing reflects one’s willingness to
pay for asset of attributes or services that are provided by the physical components of plot and
structure. Among these attributes access space, tenure, onsite services and shelter are the most
important ones (F.Linn, 1983).

4.6.3. Housing supply

The housing stock depict very modest overall living conditions. The considerable increase in
population and households in the future will create new housing demand. It is therefore
necessary that housing policy take adequate measures regarding supply and demand. Housing
supply is defined as the amount of housing that supplier’ offers for consumption at any given
time, this supply includes the production of new dwellings as well as any spending on
exacting dwellings that increase the amount to quality of dwelling available for consumption
(London and doak, 1991:105, as cited Enderias).

5. Experiences of housing provision

5.1. World experience in housing provision

Among the many urban development policy components many countries have taken housing
policy as major one and given considerable attentions. Because housing policy influences
other urban development activities.
USA Historically both federal and state governments have generally failed to develop a public
housing sector in contrast to Europe (and to some extent Australia), although there is currently
a very small stock of welfare housing for households in greatest need, as determined by
means testing. Throughout the twentieth century housing policy has been strongly oriented
towards the private sector. Since 1913 house buyers have been able to claim relief from
federal income tax and local property tax on mortgage interest, while tax policy provided
incentives to private landlords to maintain the condition of private rented housing during the

15
1980s, house building in the public sector decreased substantially, and rents soared as the
federal government became even less involved in meeting housing need.

In Singapore housing is a direct government concern; government encourages private house

ownership by constructing and selling out the public houses. 90% of the houses in Singapore
are privately owned. This is because there was; strong government support and commitment
clear identification of target groups, comprehensive planning and coordination housing
options and schemes, total approach to housing management and affordability and low cost
financial schemes.

5.2. Housing provision experience in Africa

South Africa clearly spall out in their constitution that housing is a basic necessity that every
citizen has the right to claim for housing.ht The government beyond enabling the private
house developers to build rental and other modes of housing, it is directly involved in
constructing public houses. In its last five years program the government of the South Africa
had planned to build 1,000,000 houses in five year periods and successfully completed and
allocated all the houses for target groups free of charge.

5.3. Housing provision experience in Ethiopia

Since 1983 the government of Ethiopia has put in place a number of polices and strategies
including provision of land through different mechanism (real state builder, home owner
associations, individuals etc...), to solve the long prevailing housing problem. However, the
effort made were not able to offset the existing housing problem in the country.. It has not
been able to overcome the financial constraint and could not give attention to strengthening
construction sector and thus could bring about better results. Currently, it is clear that the
market system could not supply housing to all sections of the society at a reasonable price.

5.3.1. Housing provision experience in Addis Ababa

The Addis Ababa city administration has put in place a more transparent integrated housing
development program and is now building 3.2 thousand houses. The housing development
program started in Addis Ababa is aimed to provide wide employment opportunities and to

16
raise the capacity of the construction industry in addition to solving the housing shortage
problem. The experience the Addis Ababa housing development program depicts that this
integrated housing development program planned and to be implemented at national level will
have a great role in strengthening the capacity of the construction industry and creating
employment opportunity. In other regions, the activities started are not done based on
implementation procedure that is consistent and with clear objective; they could be taken as
fair conditions to be bases for this urban housing development program.

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