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High urbanization and population rates in Ethiopia
will affect providing capacity of urban infrastructure, services, and housing
supply. The massive housing needs are unlikely to be met by the small-scale housing cooperative, government,
and upgrading approaches prevailing from the late 1970s until the mid-2000s, (
accessed 30 November 2017).

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
government estimates that the current housing deficit is between 900,000 and
1,000,000 units in urban areas. In Addis Ababa alone, 300,000 units are required to
meet the deficit (UN-HABITAT 2008: 6), the shortage
comes from driving of high population growth and urbanization.

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Integrated Housing Development Program (IHDP)
in Ethiopia was launched in 2005 and by 2011 has already built 171,000 housing units,
a significant achievement considering the limited capacity of the Ethiopian housing
sector (UN-Habitat, 2011a). The
condominium housing program is currently being used in Ethiopia as a way to
reduce the housing problem of urban low-income
people, among others. This method increases the access of the poor households
to the better quality housing at an
affordable price. The program targets only middle and lower income households
(MWUD, 2007). It allows low-and-middle income households, who typically live in
‘precarious’ housing situations to access improved housing (UN-HABITAT, 2010).


lot of research has been carried out locally and internationally reviewing
housing problems and urban household’s socio-economic problems.
Housing is unique in the central role it plays in the lives of families as “the
basic building block for a range of related benefits personal health and
safety, employment opportunities, a decent education, security of tenure, and
economic security” ( Bratt, Stone & Hartman, 2006, p. 1., Cited by Andrea
Lynn Bentzinger, 2009).


Housing whether owned or rented is
critical to individuals and families for many different reasons, but arguably
is most important for low-income families because it often takes a large
portion of income to sustain and possibly prevents them from meeting other
basic needs (Cook, Steggell, Suarez,
& Yust, 2006; Dolbeare, 2001; Long, 2003; Stone, 2006, Cited by Andrea Lynn
Bentzinger, 2009).


Impact of
holding assets, among which housing can be taken as an example, on economic and
social outcomes of families is limited. Conceptually, the economic benefits of
asset holding may lead to social benefits, including increased household
stability and reduced tension during periods of unemployment (Lerman and
McKernan, 2008).


Much of the
previous discussion has focused on identifying the possible outcomes of
homeownership for the population and less attention has been given to what
factors may predict rented households, which could have important implications
for policy. Housing is important on many different levels; individuals,
families, communities, and the nation are all affected by housing. According to
CSA, (2007) 61.25% of the Addis Ababa households lives in the different form of rented houses.

 The researcher is trying to show one of those
impacts which have not been seen either
by the government or researchers worked in the comparative
way of rented and owned households welfare impacts. In this research rented
household welfare impacts are dealt as they are seen in Addis Ababa.

There is a scarcity of
literature touching on Household welfare Impact of
Rented House on Urban Households and comparing fact on the welfare status of
rented and house owned households. Addis Ababa has been select as a research setting due to the
fact that research works are very little; they are emphasis only on public and condominium
house ownership welfare situations. I was try my best to find such related studies
as much as possible in case of Ethiopia but some papers found in foreign countries
case those are different in some context (variables) economical and attitudinal
on the living situation in rented households
and owned households welfare. Consequently, the study is a target to fill this gap.

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