Demand Elasticities for Low Income Housing Market: kepha otieno demand elasticities for low income housing market

Demand Elasticities for Low Income Housing Market:

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There has been an increase in housing demand for low-income urban dwellers as the case of Eldoret Municipality in Kenya has demonstrated. However, one factor that has not been looked at is housing demand elasticities. This study sought to investigate, demand elasticities for low income housing market in the municipality. The study revealed that, 1 per cent increase in the household’s income will increase housing demand for the low-income households by 0.960 per cent. On the contrary, 1 per cent increase in the price of housing services will decrease housing demand by 0.642 per cent, finally household income was found to be the most significant determinant of housing demand for the households, at 0.05 levels of significance. In conclusion demand for housing is positively responsive to income of the low-income households. Conversely, demand for housing is negatively responsive to the price of housing services for the low-income households, and finally income is the most significant determinant of housing demand for the low-income households in Eldoret Municipality.

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