Urban Household Welfare

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Historically, economists used financial indicators such as household income, GDP, or consumer confidence as measures of welfare. However, it has become increasingly evident that there are a large number of people who are financially well-off but are still not happy with their situation in life. This question of welfare must be rethought and aimed towards measuring the perceived quality of one’s situation in life (Joshua, 2011). This study uses this question as a foundation to access urban household welfare. It focuses on the rented households in order to determine the impact which is contributed to his welfare. UN world urbanization prospects (2011) indicate that the level of urbanization in the world as a whole was about 46.6 percent in 2000,…show more content…
As a result of this, inadequate housing condition has become an intractable challenge that has continued to receive attention from governments, professionals, developers and individuals in most developing countries (Adeleye Olufemi, 2016). Addis Ababa is a city with various aspects of urban problems, which include among others, severe housing shortage and poor housing, a highly skewed income disparity, deepening poverty, a concentration of low incomes, overcrowded conditions, high rates of unemployment, transport and infrastructure problems and other related urban problems. In Addis Ababa, there is an ever growing mismatch between the size of the population and its demand for basic services. Housing is one of these services, which has been for long gravely demanded by the public at large (Yinebeb,…show more content…
It also plays a major part in defining lifestyles (Jim Kemeny, 2001). Home property is often the most important asset in a household's portfolio (Greenspan and Kennedy, 2008). It is usually the most valuable asset a household owns and the most readily available collateral for borrowing and house are a subject great risk on rented household welfare. The most expensive item of household expenditure is rent and for many tenant-households, this takes up more than a third of their income. When people live in their own homes they may save on rent payments (Ruth McLeod and David Satterthwaite, 2004). Rent fee is critical for each household for many different reasons, but most important for low-income households because it takes a large portion of income this is the drawback to fulfill other basic needs. Spending too much on rent means less money for other necessities, including food, education, and medical

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