The Effects of Macro-Economic Variables on Private Residential Housing Development in Minna, Niger State

Abstract

This paper examines the effects of macro-economic variables on housing development in Nigeria taking Minna, Niger State as the study area. Based on some national economic review data from Power Holding Company of Nigeria, Federal Office of Statistics Niger State Ministry of Lands and Survey, and Niger Urban Development Board Minna, the relationship between rate of housing development and variables such as rate of change in exchange rate population interest rate and trends were studied. Using the simple Regression Analysis technique and working at 95% confidence limit, an extrapolation was made of the possible statistical linear relationship existing between of housing construction and some economic variables. The research showed R-square of 83.29%, 16.10%, 0.26% and 90.25% for actual houses constructed each year over the period under review against, exchange rate inflation, interest rate and population growth respectively. The study revealed inadequacy in housing provision over the period under review. It was suggested that encouragement of private (internal and external) investors in infrastructural development should be adopted in addition; democratic governance should adopt a free market strategy so as to allow market forces determine economic growth.