Budgetary allocation to the housing sector and the impact on prices of some building materials

Abstract

This research evaluates budgetary allocations to the housing sector and the impact on prices of some building materials. Using data obtained from Lokoja metropolis in (Kogi State) of Nigeria as well as the statistical technique of regression, set at 95% confidence level, it establishes as follows: significant relationships exist between the prices of (blocks, sand and cement) and the budget for housing sector, recording R-square values that were between (64.25-55.31)%. Further linear regression equations between the parameters of (% change in prices of block, sand and cement) and (the % changes in budgets for housing) were not however significant, recording R-square values that were between (0.37-3.27)%. Exponential transpositions of the linear equations were not significantly different from the initial ones. The research concludes that % increases in budgetary allocations to the housing sector do not account for the % increases in the prices of the materials. Other economic factors outside the tested parameters are likely to account for the changes in prices. The research recommends further studies which explore the influence of macro-economic variables on the prices of building materials and budgetary allocations.