Determinants of Mortgage Price Affordability: A Study of Ghana

Owusu-Manu, D.-G. and Edwards, D.J. and Pärn, E.A. and Asiedu, R.O. and Aboagye, A. (2018) Determinants of Mortgage Price Affordability: A Study of Ghana. International Journal of Housing Markets and Analysis, 11 (4). ISSN 1753-8270

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Purpose: While mortgage markets have gradually emerged in many African countries, substantial barriers still hinder their growth and expansion. Affordability has been widely cited as a prominent issue that doggedly remains at the core of urban housing problems. Hence, this research seeks to investigate the determinants of mortgage price affordability.

Design/methodology/approach: Data was gathered using semi-structured questionnaires obtained from a sample drawn from three major West African mortgage financing institutions. Respondents rated the variables using a five-point Likert item rating. The survey results were analysed using exploratory factor analysis.

Findings: Eleven variables that influence mortgage affordability were categorised within five principal components, namely: economic factors, financial factors, property characteristics, developmental factors and geographical factors.

Practical/ social implications: The results provide insightful guidance to policy makers and practitioners on how to mitigate affordability issues within Ghana’s fledgling mortgage market. Failure to address the mortgage price affordability conundrum will place enormous pressure upon social housing and rental accommodation.

Originality/value: The research findings expand existing frontiers of knowledge by investigating and reporting upon the determinants of mortgage price affordability. The work also engenders wider debate on the need to establish mortgages packages targeted at low-middle income earners. The culmination of analysis and debate will provide a robust basis for developing a future housing policy framework.

Item Type: Article
Identification Number:
8 January 2018Accepted
Uncontrolled Keywords: Affordability, Financing, Ghana, Housing, Mortgage, Price
Subjects: K900 Others in Architecture, Building and Planning
Divisions: Faculty of Computing, Engineering and the Built Environment
Faculty of Computing, Engineering and the Built Environment > School of Engineering and the Built Environment
REF UoA Output Collections > REF2021 UoA13: Architecture, Built Environment and Planning
Depositing User: Euan Scott
Date Deposited: 08 Feb 2019 08:54
Last Modified: 08 Feb 2019 08:54

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