Institutions' dynamics and homeownership aspirations in Ethiopia

The desire to own a home is a common aspiration amongst many. The role of institutions either by enabling or constraining the achievement of the aspirations is very crucial. Unfortunately, the study investigating the impact of these institutional factors on homeownership aspirations was not adequately adequate. Thus, the researchers motivated to analyze the role of institutions for homeownership aspirations. Researchers used qualitative and quantitative data analysis methods to explore the relationship between mortgage access, housing market prices, and homeownership in Sheger City, Ethiopia. The study involved 384 participants, and the results were analyzed using descriptive statistics and multinomial regression. The findings suggest that mortgage access and housing prices play a significant role in shaping homeownership aspirations. However, it was apparent that banks prioritize the wealthy, resulting in the housing market neglecting the needs of low-income individuals and families, leading to unaffordable housing options and findings revealed institutions’ dynamics are accompanied by dysfunctions. The multinomial regression analysis revealed that the likelihood of owning a home over renting one increases when housing becomes more affordable which shows market dysfunctions affect aspirations to homeownership. Obtaining a mortgage is also critical, as it significantly improves the chances of aspiring to own a home. The authors suggest that the Municipality reconsider the affordability of mortgage services and housing prices to ensure that homeownership opportunities are distributed fairly.