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    This study investigated the critical factors affecting the affordability of mortgage housing in Kenya. Through a multiple regression model, the study identified several key factors that significantly influence housing affordability in Kenya. Specifically, interest rates on mortgages, the number of dependents in a household, loan-to-value ratios, the type of mortgage instrument used, the number of income earners per household, GDP per capita, and household size were found to be the most important factors contributing to affordability problems for households in Kenya's mortgage housing sector. The study aimed to provide insight into the underlying drivers of housing affordability challenges in Kenya.

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    This study investigated the critical factors affecting the affordability of mortgage housing in Kenya. Through a multiple regression model, the study identified several key factors that significantly influence housing affordability in Kenya. Specifically, interest rates on mortgages, the number of dependents in a household, loan-to-value ratios, the type of mortgage instrument used, the number of income earners per household, GDP per capita, and household size were found to be the most important factors contributing to affordability problems for households in Kenya's mortgage housing sector. The study aimed to provide insight into the underlying drivers of housing affordability challenges in Kenya.

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    13 views1 page

    Critical Factors Affecting Affordability of Mortga

    Uploaded by

    Boss Vas
    This study investigated the critical factors affecting the affordability of mortgage housing in Kenya. Through a multiple regression model, the study identified several key factors that significantly influence housing affordability in Kenya. Specifically, interest rates on mortgages, the number of dependents in a household, loan-to-value ratios, the type of mortgage instrument used, the number of income earners per household, GDP per capita, and household size were found to be the most important factors contributing to affordability problems for households in Kenya's mortgage housing sector. The study aimed to provide insight into the underlying drivers of housing affordability challenges in Kenya.

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    J Hous and the Built Environ (2018) 33:111–131

    https://doi.org/10.1007/s10901-017-9547-4

    ARTICLE

    Critical factors affecting affordability of mortgage


    housing in Kenya

    Raphael M. Kieti1 • O. A. K’Akumu2

    Received: 14 December 2015 / Accepted: 11 April 2017 / Published online: 22 April 2017
     Springer Science+Business Media Dordrecht 2017

    Abstract This study investigated factors affecting affordability in the mortgage housing
    sector in Kenya. Housing affordability is a major problem experienced by urban house-
    holds in Africa. According to the African Development Bank (The middle of the pyramid:
    Dynamics of the middle class in Africa, market brief, 2011), only three per cent of the
    entire African population can afford a mortgage. In Kenya, the Centre for Affordable
    Housing Finance in Africa has estimated that only eleven per cent of urban households
    earn enough to support a mortgage. Attempts were made in this study to develop an
    empirical model to reveal the underlying factors affecting housing affordability in Kenya.
    Applying a multiple regression approach, the model identified that affordability of mort-
    gage housing in Kenya is significantly driven by clusters of factors related to the house-
    holds’ social-economic factors, property attributes, loan characteristics and the
    macroeconomic environment. Specifically, the interest on mortgage, number of house-
    holds’ dependents, loan-to-value ratio, type of mortgage instrument, number of income
    earners in a household, real gross domestic product per capita and size of household are the
    critical factors affecting affordability with the greatest contribution to the affordability
    problems of households in the mortgage housing sector in Kenya.

    Keywords Housing affordability  Critical factors  Mortgage housing


    sector  Kenya

    & O. A. K’Akumu
    owiti.kakumu@uonbi.ac.ke
    Raphael M. Kieti
    r_kieti@yahoo.com
    1
    Department of Real Estate and Property Management, The Technical University of Kenya, Nairobi,
    Kenya
    2
    School of the Built Environment, University of Nairobi, Nairobi, Kenya

    123
    Content courtesy of Springer Nature, terms of use apply. Rights reserved.

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