ASSESSMENT OF ECONOMIC FACTORS THAT INFLUENCE RESIDENTIAL AREA PREFERENCE IN OTUKPO TOWN, BENUE STATE. NIGERIA
Authors:
Christopher Owoicho, Ann Oche Audu, & Maza Tyumba Yonana
Abstract:
The study assessed the economic factors that influence residential area preference in Otukpo town of Benue State, Nigeria. Variables considered based on households’ characteristics and used for the study include income, affordable rent, and ability to pay rent, mode of rent payment, amount of rent, the regularity of rent increase. A sample size of 400 households was selected and administered the questionnaire, but 386 households returned their questionnaire. Three sampling techniques were employed for the study. First, stratified, sampling technique was used to stratify the town into eleven(11) residential areas; secondly, systematic random sampling was used in which one household head was selected based on the skipping ratio of four (4) per interval. The data collected for this study were analysed using factor analysis because of its ability to reduce large variables to manageable factors. Using factor analysis based on the Kaiser Principle, two factors were extracted using the variable maximization method with Eigenvalues of 4.73, and percentage contributory variance of 78.81 %. These economic factors include household income (.844), ability to pay rent (.930), affordable rent ((.681), mode of payment (.906), amount of rent (.905) and regularity of rent increase (.903). The study revealed a positive relationship between the factors and shows the extent to which these factors strongly influence residential area preference in Otukpo town. The study further revealed that residents generally placed more emphasis on income, amount of rent, affordability of rent, mode of rent payment and regularity of rent increase when taking residential area decision in the study area. The study, therefore, concludes that residents’ locate in the study area base on their income level and effective demand. The study, therefore, recommends that state and local government authorities should construct low-income houses for her citizens to caution the exorbitant rent by landlords. The government should regulate rent in terms of amount, mode of payment and regularity of rent increase to ease life for the residents’ in the study area.