An anonymous wrote and I quote. “There is no point in building houses we cannot afford, with time an abandoned structure decays down to its foundation.’’ The need for affordable housing is on a high side. In this 21st century building of houses that are accessible and affordable should be one of the primary goals of every developer.
There is a rapid growth in the Nigeria population, of which only a few can afford houses. Everyone deserves a safe place to live in, this will transform the quality of life of most individuals and families.
In a way to provide more affordable housing units for the masses, reforms are required at each stage of the housing delivery value chain, from acquiring a land, construction process, finished housing unit then to the off takers.
Also read: Factors affecting the cost of building materials in Nigeria
A multi-stakeholder environment is needed in addressing all entities involved in the production of affordable housing units from local (both state and federal) to government, private sector and civil society.
Communities develop when the needs of most residents in such communities are met. Ensuring affordable homes is a critical step in that direction, and this Insight.
To provide low-income housing, developers should develop a specific business model. Success in this sector depends on low prices, reduced production costs, a standardized range of products and a determination to prove that low cost housing does not mean low quality houses.
Also read: provision of affordable housing, needs more synergy.
One of the first major obstacles faced is land acquisition the prices increases yearly. Another constraint is the lack of infrastructure like good road network system, sewage treatment, water and power supplies etc. This usually makes it unviable for a developer to provide affordable housing without government support, by providing the necessary amenities.
To overcome these challenges, developer can start by developing townships that are well connected to the main city and where adequate infrastructure and proximity to workplaces, shops, schools, and medical facilities make them attractive.
Developers must not necessary own any lands, rather they can develop projects on a joint ownership basis with the government, which helps the company maintain an asset-light model enabling higher rates of return.
In order to reduce upfront acquisition costs, it also engages in public-private partnerships with government authorities for lands where development approvals have already been secured, with that houses remain affordable for low-income clients, operational costs have to be kept under control.
This can be achieved by developing a low-cost model that entails the building of smaller–sized buildings with standardized apartments and compact living spaces, though keeping construction costs low is an enormous challenge as far as affordable housing constitutes a huge percent of the total sales price.
The rising price of materials such as steel, cement, sand and rising labour costs, have led to an increase in construction costs over the past decade, adversely affecting affordable housing more than up-market construction.
For developers to protect themselves from this price volatility, they must seek long-term contracts with vendors and suppliers. The use of low-cost technologies and raw materials such as reinforced concrete blocks, precast hollow blocks, precast lintels, floor tiles and polymer panels helps reduce construction costs.
Technological innovation such as prefabricated buildings, made off-site and transported to the project, allow for multiple repetitions and quicker delivery while reducing dependence on labour and circumventing climate constraints. Achieving economies of scale is another important element of the low income housing model.
