The Cost of Accommodation, Internal Migration and Development: An Empirical Analysis of Bolgatanga Housing Market

Nicholas Awuse, Patrick Tandoh-Offin

Abstract


A recent price hikes in accommodation and building materials such as cement, iron rods, wood, nails, cost of labour and volatility in macroeconomic indicators in Ghana recently and in Bolgatanga in particular is likely to cause privileged accommodation price unpredictability, an important factor of default and the downward payment of housing loans (Miles, 2008). Critical analysis indicates that a significant increase in the cost of accommodation or leasing has the prospective to cause accommodation price move violently. The contented accommodation price is likely to jeopardize the immovability of the region’s true cost-cutting measure.

Accommodation price increases in Bolgatanga is a recent phenomenon which occurred at the beginning of 2000s charging Ghc 60 per room per month ($22). In Bolgatanga, accommodation prices is greater than before completely owing to the deregulation of Ghana’s housing market in the 2000s, and specifically when government fail to consign more funds for the safeguarding of existing housing facilities  and putting more as a result of gigantic growth in population and its associated movements. In Bolgatanga specifically, the price of accommodation in 2014 is Ghc 180 per month ($63) Us dollars.  The major increase in the cost of accommodation in Bolgatanga possibly will have cause house price volatility conflict, consequently endangering the firmness of the housing market and thereby the overall Ghanaian economy.

This study examines whether excessive accommodation price existed in the Bolgatanga housing market from 2000 to 2014, using economic most important variables such as interest rates, inflation, and cost of supply of raw materials. The results of the study revealed that in Bolgatanga accommodation price guide was substantially larger than the symmetry value, based on the relative economic elementary variables (income, inflation, interest rate and construction cost) during 2000 to 2014.

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