Rent-to-Income Ratio in Residential Property Market in Uyo, Akwa Ibom State, Nigeria

Abstract

This study examined the rent-to-income ratio in the residential property market in Uyo, Akwa Ibom State, Nigeria. A sample of 427 residential property occupiers was adopted. Simple percentage, means, Analysis of Variance (ANOVA), and pairwise were used to analyse the data. The result revealed that 35.3% was the rent-toincome ratio in Uyo. Self-contained took the highest rent-to-income ratio of the occupiers as it took 40% of the income while tenement took the lowest as it took 20% as the rent-to-income ratio. ANOVA showed a significant difference in the mean rent of occupiers based on the type of property and no significant difference based on profession. From the pairwise comparison of the mean rent by property type, the mean rent for the Maisonette was significantly higher than others, while the mean rent for the tenement was lesser than the mean rent of all other properties.
Therefore, tenants should be sensitized to understand the recommended rent-toincome ratio of 30% to guide them in renting housing and the implications. Also, the government should provide a home ownership scheme where she can subsidized sale of houses or land to encourage the citizens to have theirs.