IMPACT OF RURAL-URBAN MIGRATION ON DEMAND FOR RESIDENTIAL PROPERTY

THE IMPACT OF RURAL URBAN MIGRATION ON DEMAND FOR RESIDENTIAL PROPERTY IN NIGERIA CITIES

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Rural-urban migration was formerly regarded as favourable in economic development. Today, it has become one of the most embarrassing problems in the Nigerian development experience.

Rural-urban migration is ‘‘the phenomenon of a historically unprecedented movement of people from the rural countryside to the burgeoning cities of Africa, Asia and Latin America’’ (Todaro, 1997). ‘‘It is the movement of people from rural areas into cities’’ (Wikipedia, 2013). Some time ago, migration existed internally to enable excess labour to be taken slowly from the rural areas to provide workforce for industries in the urban areas and therefore aid industrial growth. However, experience in Nigeria has shown that the rate of rural-urban migration has ceaselessly outweighed the rate of job creation and having an overweight on the social and infrastructural amenities available in the urban areas which equally reflects on housing demand.

Housing is one of the best indicators of a person’s standard of living and his place in the society. Like food and clothing, housing ranks among the three (3) basic human needs. Its availability is very crucial to the welfare of every human. Housing, literally is defined as buildings or other shelters in which people live, a place to live, a dwelling and to Nations a critical component in social and economic fabric. To most groups housing means shelter but to others it means more as it serves as one of the best indicators of a person’s standard of living and his or her place in the society (Nubi, 2008). It is a priority for the attainment of living standard and it is important to both rural and urban areas. These attribute make demand for housing to know no bound as population growth and urbanization increase very rapidly and the gap between housing need and supply becomes widen.

According to Olofinji (2016), demand for residential property demand can be explained as the willingness and ability of housing consumer to pay for a particular dwelling, depending upon such consumer’s income, house type, location preferences and local prices.

In other words, demand for residential property at certain price refers to the value that is placed on a house linked with the satisfaction derived in such house.

Residential property demand in urban center is a manifestation and reflection of different household desires to live in an urban center. The desire of people to live in an urban center especially in Owerri is increasing at an alarming rate. Owerri for instance has a teeming population that exceeds the resources inherent, and the city may indeed witness a population explosion if urgent measures are not taken to curtail it.

It is against this introductory background of the study that the researcher has intended to examine the impact of rural urban migration on demand for residential properties in Nigeria cities with particular reference to Owerri Municipal of Imo State in Nigeria.

1.2   STATEMENT OF THE PROBLEM

At a glance to everyone who visits Owerri Municipal, it is not farfetched to notice the influx of rural population into the area which is evident in the over-crowdedness of Douglas road, Wetheral road, School road etc. This may not be far from the fact that these rural population are seeking for “better life”. In some other places like Oguamanam Street, Uche Street, Uche street extension, Lobo Street to mention but a few, as much as these areas are overcrowded, most people are found living in indecent building apartments due to their socio-economic background which cannot cope with an ever increasing price of decent houses.

Ever since Owerri became the state capital of Imo state, a lot of people have migrated and still migrate from the rural areas and even from some urban areas into it. They come in search of job opportunities, apprenticeship, trading, school etc. Due to this migration of people from different areas into Owerri Municipal, problems of accommodation started, overcrowding on social infrastructure also started which brought about ageing of the infrastructure, damages on the electrical fittings and plumbing fittings of houses, bad ground water due to excess waste that penetrates in the ground etc. Many people live in crowded areas which in turn affect the human health, living standard and the structural members of the city.

On the other hand, it may be the cause of traffic congestion, delayed services in banks, hospitals, and shopping centers. Low quality education in schools in Owerri municipal may also be an issue caused by rural-urban migration. It may have also been the reason for the over utilization of facilities yielding impacts such as  cracking of road, emergence of pot holes, wear-off on buildings etc.

Furthermore, observation has shown that government policies have been in favour of urban development, by purposely and continuously creating employment opportunities, educational opportunities and other infrastructural amenities more in the urban areas compared to the rural areas. Owerri Municipal is not an exemption to this fact. Currently, there exist about three (3) government owned Community Primary Schools clustered together within the boundaries of Tetlow Street and Royce Road whereas there are other surrounding communities which do not have up to two schools to support the entire community. It is noteworthy to also mention that some of the existing schools in these rural communities are not up to standard; therefore, people in search of better education may simply migrate from their rural communities into Owerri Municipal.

It may also be noticed that rural-urban migration have resulted to inequality in the development and quality of life between the rural and urban areas, and therefore may be an enhancing factor to rural-urban migration. People could be attracted to urban areas because they think they will have greater opportunities there.

It is a general notion that the rural areas in Nigeria are being affected by several incapacities in various levels of severity such as: inaccessibility, seclusion, under development, poverty, drabness, boredom, ignorance, depopulation, hunger, and all types of sicknesses. Migration from rural to urban areas may lead to reduction in the number of rural populace and on the other hand may result to high rate of demand on urban housing in cities to which they migrated to.

Therefore, there is need for studies that will focus on the reduction of residential property / housing demand in Owerri Municipal by discouraging rural-urban migration. Such studies will be important so as to create awareness on the present situation, improve understanding and proffer solutions to the issue. This research work is part of the endeavour to contribute towards filling this gap and thus focuses on the impact of rural-urban migration on demand for residential properties in Nigeria with references to  Owerri Municipal, Nigeria.

1.3   AIM AND OBJECTIVES THE STUDY

The aim of this study is to examine the impact of rural-urban migration on demand for residential properties in Nigeria – a case study of Owerri Municipal.

OBJECTIVES

Specifically the objectives of the study are;

1. To ascertain the causes of rural-urban migration and its impact on demand for residential properties in Owerri Municipal.
2. To determine the setbacks which rural-urban migration has on residential property demand in Owerri Municipal.
3. To suggest ways of discouraging rural-urban migration thus reducing its impact on housing demand in Owerri Municipal.

1.4   RESEARCH QUESTIONS

The following research questions are posed to guide the study.

1. What factors lead to rural-urban migration?
2. What are the impacts of rural-urban migration on the

demand for residential properties in Owerri Municipal?

• What mechanisms are to be adopted in solving the problem of rural-urban migration in other to reduce its impact on residential properties demand in Owerri Municipal?

1.5   RESEARCH HYPOTHESES

The hypothesis for this research work is as follows;

H₀: The rate of residential properties / housing demand in Owerri municipal is not dependent on rural-urban migration.

H₁: The rate of residential properties / housing demand in Owerri municipal is dependent on rural-urban migration.

1.6   SCOPE OF STUDY

The scope of this study is limited to rural-urban migration and its impact on residential properties demand in Nigeria, with the primary focus on Owerri Municipal in Imo State.

Furthermore, the research assessed the high rate of housing demand attributed to rural-urban migration which may be associated with various detrimental consequences that will be unfolded in the course of this research.

Hence, the study is limited to showing the adverse impact rural-urban migration has on the demand for housing in Owerri Municipal. Generally, the study looked at the problems, impacts, causes, and how they can be tackled.

1.7   SIGNIFICANCE OF THE STUDY

This work is expected to provide a proper understanding for the subject matter under study, thus it will be of immense help in tackling the problem of its practical perspective.

The study will supply the much needed background in tackling the impact of rural-urban migration on housing demand. Most of the developed countries today are great because they make use of research findings, which often originate from research works.

Therefore;

– The study when successfully completed will be of value to the educational planners and the government.

– The study will be of importance to researchers/students working on related topics.

– The study will reveal the reasons why people migrate from rural area to urban centers and the impact of such movement on housing demand in the study area.

– The study will also be an addition to previous works on the topic, thus, an addition to knowledge.

1.8   THE STUDY AREA

Owerri Municipal is a local government area of Imo state, Nigeria. Its headquarters are in the city of Owerri. Owerri Municipal council, formerly the headquarters of old Owerri local government area(comprising the present day Owerri Municipal, Owerri north, Owerri west and Ngor-Okpala local government areas) became a Municipal council on 15^th December 1996.

The council has an urban setting with one autonomous community made up of 5 indigenous kindred (Owerri nchiise) vis: Umuororonjo, Amawom, Umuonyeocha, Umuodu and Umuoyima, under the rulership of one permanent traditional ruler, presently he is the Eze of Owerre (a.k.a Ozuruigbo of Owerri). The apex traditional institution in the area is the “Oha Owerri” elder’s council, which is the area, is also the judicial aim of government (settling all dispute and other matters). “Onyeishi ala Owerri” is the traditional chief priest of the community. The entire women of “Owerri nchiise” are also under one umbrella body- the “Udodinindom Owerri”.

Generally, the five kindred of Owerri Municipal council are: Amawom, Umuodu, Umuonyeocha, Umuoronjo, Umuoyima. Owerri Municipal also covers the following areas: New Owerri, Ikenegbu, Aladimma, G.R.A and Work layout. Entrances into the Municipal council are Okigwe road, Onitsha road, Port-harcortroad, Aba road and Mbaise road.

1.8.1        LOCATION AND SITE

Owerri Municipal in Owerri, Imo state, Nigeria is located at approximately 5.4833N (Latitude in decimal degrees) and 7.03041E (longitude in decimal degrees). That is 5.4833N 7.035E coordinates: 5.485N 7.035E

Nigeria->Imo state->Owerri->Owerri Municipal Time zone: WAT (UTC+1) Owerri Municipal is bounded on the north by Amakohia, on the north east by Uratta, on the east by Egbu, on the east by Naze, on the south by Nekede and on the north east by Irete.

(a)    Rainfall

The study area is within the rain forest belt of Nigeria. Two distinct condition or season (ie wet and dry season) exists. These two regimes are derived from the different air masses prevailing over the country at different times of the year namely; the dry northeast air mass of Sahara origin (tropical continental air mass) which is responsible for the dry season. It blows across the Sahara desert towards Nigeria. This wind pushes the southeast wind further towards the coast where the tropical front is now formed. It is cold, dusty and dry; hence, it does not bring rain. Rather, it brings very cold, dusty, and dry weather called harmattan. It usually starts from November and ends around February and the humid tropical maritime air mass (south west trade wind) originating from the south atlantics. It blows from the high pressure belt area in the south in June to the low pressure belt in the north. This then pushes the tropical continental air mass towards the north where the inter-tropical front is formed. That is, the wind blows across the Atlantic oceans towards the coast of Nigeria. The wind is warm and wet; hence it brings rainfall to the study area. The rainfall decreases towards the northern part of Nigeria. It usually starts around March and ends around October with a short dry period in august called august break.

The rainfall pattern in the area is oscillatory, that is convectional rainfall occurs in area intensively heated like the study area. This results in heavy rain, accompanied by thunder and lightning. The area is characterised by heavy winds, lightning and thunder storm accompanied with heavy rain. The two peak periods are usually between June and September. The annual rainfall ranges from 1600-2900mm.

THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Property is a multi-dimensional product and the number and nature of factors that influence its value are equally of different kinds. Property values tend to increase in areas with expanding transportation networks and population growth (Goldberg, 2017). The movement of people from rural to urban areas is a common occurrence in Nigeria which have greatly impacted on property value in urban centres or cities in Nigeria. Rural urban migration involves the movement of people from their respective rural households to urban centers in search of better living conditions. The movement poses some problems in the rural as well as in the urban centre even though there are benefits derivable from it (Mini, 2000).

Properties have continued to attract the investment interest of real estate developers as a result of population growth mostly due to rural – urban migration. This is because of the increasing demand for properties such as residential and commercial properties in the urban centres (Olujimi and Bello, 2009); and because of the increase in rent (value), which is usually attached to the property (Oduwaye, 2017). Several factors exist that determine value of real properties. According to Britton (2019), determinants of individual property value include location, time, property interest, state of repair, accommodation details, services/facilities and rural urban migration.

Rural-urban migration can be seen as the physical transnational of individuals or group of people from rural areas to urban centers. Rural-urban migration is the most important aspect of labour migration because it affects the structures and composition of the population. The effect of rural urban migration on property value is far more than merely a demographic or quantitative one. Whereas the rural urban migration has result in population growth and urbanization in  developed countries was the result of rapid industrialization, the growth in Nigeria like most other developing nations is a consequence of the “push” of the rural areas and the “pull” of the town (Kehinde, 2010). The majority of African urban centres developed and continues to develop as commercial-administrative and servicing entities. In Nigeria like in most other developing countries, the growth of the tertiary sector is often a symptom of poverty and stagnation rather than economic development. Consequently, population growth in most of the African countries is characterized by a growing gap between employment opportunities and demand, and an ever increasing shortage of urban services and facilities which are accessible to a diminishing share of urban population.

Gross migration refers to the total number of migrants moving into and moving out of a place, region or country, while net migration is the balance between the number of migrants coming into and moving out of a place, region or country. Migration can be considered as a significant feature of livelihoods in developing countries to pursuit better living standards. Central to the understanding of rural urban migration flow is the traditional push-pull factors. “Push factor” refers to circumstances at home that repel; examples include famine, drought, low agricultural productivity, unemployment etc. while “pull factor refers to those conditions found elsewhere (abroad) that attract migrants.  There are many factors that cause voluntary rural-urban migration, such as urban job opportunities, housing conditions, better income opportunities etc. There is no doubt that, apart from these factors, urban areas also offer a chance to enjoy a better lifestyle. Pull factors have predominated- urban environment provides better employment and income opportunities. It is on bases that this study seek to examine the effect of rural urban migration on property values in Osogbo Osun State.

1.2       Statement of Problem

World population has risen to over 6.3 billion people and by 2030 over 60 percent of the world’s population is expected to be living in cities mostly as a result of rural urban migration. There are now over 400 cities with a population of over a million people (UN-Habitat, 2015).  Rural urban migration has resulted in population growth which is an underlying factor for the demand of property, without new supply of dwellings, it pushes up the prices for both renting and purchasing dwellings. The problem is further compounded in many of the large cities with a change in living preferences that has resulted in a fall in household rates, particularly in the western world. Hence, population movement to the city that is rural urban migration and fewer people per household means the supply of more housing is needed. The rural urban in Osogbo Osun State has assumed a geometrical proportion, the provision of urban infrastructure and housing to meet this demand is, not at commensurate level. This has resulted in acute shortage of housing / residential properties to the teeming population. The inadequacies are far-reaching and the deficit is both quantitative and qualitative; even those households with shelter are often subjected to inhabiting woefully deficient structures as demonstrated in the existence of slums and shanties in and around the city of Osogbo. They reside in the slums and squatter settlements scattered around the city and are predominantly engaged in informal economic activities which encompass a wide range of small-scale, largely self-employment activities. This problem can only be brought under control through urban consolidation and/ or development of properties in the urban center. It is on this note that this study seek to examine the effect of rural urban migration on property value in Osogbo Osun State.

1.3       Aim and objectives of the study

            Aim:

The aim of this project is to examine the effect of rural urban migration on property  value in Osogbo – Osun State.

Objectives:

The specific objectives of this study include:

1. To determine the cause of rural urban migration in the study area
2. To evaluate the state of properties in Osogbo – Osun state
3. To determine the effect of rural urban migration on the property value in the study area
4. To identify other factors affecting property value in the study area.
5. Assess the impact of population growth on the demand for residential properties in the study area

1.4       Research Questions

1. What are the causes of rural urban migration in the study area?
2. What is the state of properties in Osogbo – Osun State?
3. What are the effects of rural urban migration on property value in the study area?
4. What are the other factors affecting property value in the study area?
5. What is the impact of population growth on the demand for residential properties in the study area?

1.5       Significance of the study

The importance of the research is to be appreciated by all since concepts of rural urban migration and its effect on properties value affects everybody irrespective of class, status or occupation.

However, the study will be importance to the following categories of persons.

1. Government (policy makers): The government will benefit from the study since it will provide the basics for making policy changes and formulating future policies. It helps the economy in planning for development especially in real estate development.
2. Students: The study is important to students since it will reveal more details and provide more information for those who are interested in finding out rural urban migration trends in Nigeria and its consequences on properties value in Nigeria and also for further studies.
3. Research: This study will provide more information for further research about the rural urban migration and its effect on property value in Osogbo – Osun state.
4. Investors in Real Estate: Real estate investors will benefit from the findings of this study as it enlighten on the effects of rural urban migration on property values in Osogbo, it will put them in better position to make inform decision on how to invest their money.

1.6       Scope and limitations of the study

The scope of this study covers only the effect of rural urban migration on residential property value in Osogbo Osun State. Other properties such as commercial properties, industrial or educational properties will not be included in this research. Geographically, the study is limited to Osogbo the Osun state capital.

Limitations

The researcher faced various problems when carrying out this field study. Some of these challenges included:

1. Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
2. Delays were experienced from the respondents who took very long to complete the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher.
3. At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

1.       Operational definition of terms

Migration:  Migration refers to permanent or semi-permanent change in the place of residence of an individual or a group of individuals from one location to another.

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2013)

Population Growth: Population growth is the increase in the number of people that reside within a state or country.

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

1.8       The study area

The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.

Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.

Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.

Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred.  The railway tracks were constructed linking it to other parts of Northern Nigeria.  This attracted people from far and near.

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.