HOUSING DEMAND IN URBAN BANGLADESH: EVIDENCE BASED INTERVENTIONS TO REDUCE PROLIFERATION OF INFORMAL SETTLEMENTS
United Nations University Institute of Advanced Studies
Download Document| Date Published | 2010 |
| Version | |
| Primary Author | Sohail Ahmad |
| Other Authors | |
| Theme | Housing Demand |
| Country | Bangladesh |
Abstract
Abstract - This paper estimates housing demand and the demand for housing attributes, with the intention of informing policy aimed at reducing the housing deficit and improving housing conditions in urban Bangladesh, using a survey of 4,400 households. Results revealed that (a) housing demand is inelastic with respect to income and price, (b) price elasticity (- 0.05 ~ -0.18) is less than income elasticity (0.39 ~ 0.69) in absolute terms and (c) income and price elasticities of owner households are more than renter households. Furthermore, analyses indicated that owner/renter households have demand for quality of dwelling (better quality of sanitary facilities, structure made up of permanent materials and electrification) and quantity of dwelling (number of room and separate dining/kitchen). Moreover, squatter households have demand for number of room, pit latrine, water supply and electrification but not structural quality. The analyses suggest that income improvement strategies rather than lowering the price of land/housing would be more effective in reducing housing deficit. Promotion of the renter housing market of good quality with small size in Statistical Metropolitan Areas (SMAs) and vice versa in non-SMAs would be effective to reduce housing deficit. Furthermore, in addition to income improvement, provision of tenure security with adoption of incremental approach of housing development with particular focus on SMAs would be effective to improve housing conditions of squatter dwellers.