Assessing Spatial Variations of Rental Housing in Vijayawada City

Abstract

As per 2011 census, the country has had a population 1,210.98 million out of which 3777.10 (31.16%) live in urban areas. The country is also experiencing a trend of growing urbanization which has led to a major problem of housing shortfall. To address this issue of growing housing need and shortfall, the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in the past, has launched many programs such as BSUP (Basic Services for Urban Poor) under JNNURM & IHSDP (Integrated Housing and Slum Development Programmes) etc, and presently has launched PMAY Pradhan Mantri Awas Yojana - Housing for all (Urban). However, these are focused on increasing home ownership. The Census of India says 27% of the urban population live in rental housing accommodation (2011 census), while 69th round of the national sample survey (2012) indicates the figure as 35%. These figures imply a major role of rental housing in the housing market and meeting the said issue of growing housing need. The schemes launched with a focus of increasing home ownership may solve the urban housing problem only partially without including a focus on rental housing as well. Rental housing provides a broad choice of shelter in all phases of life playing a prominent role in the housing market. It is known that rental values change from place to place. It is thus, necessary to understand the influences on rental housing market which tends to be local in character, like physical attributes, socio- economic attributes and access to transportation for employment locations and other facilities. This study attempts towards improving the understanding of a case study rental housing market and examines how location preferences determine prices of rental houses. The study findings would be useful not only in evolving strategies at a local level but would also provide clues for national and state level actions. The aim of this project is to evaluate the parameters which are responsible for the spatial variations in rental housing preferences and consequently the rental values in a case study city Vijayawada where large scale changes in the housing rentals can be observed after bifurcation of the state of Andhra Pradesh and shifting of the capital city administrative functions. ii Assessing Spatial Variations of Rental Housing in Vijayawada City In order to achieve this, six wards were selected in the city with three of these located within the older areas and three in the newly developed areas. A questionnaire survey [sample survey] was carried out among the populace living in rented accommodation in these wards. The sample survey reveals the overall rental housing scenario, how housing preferences vary within the areas and identifies the stated reasons for the rental variation. Based on the survey results, attempts were made to evaluate the role [in terms of the relationship] of physical attributes, socio- economic attributes and access to transportation for employment locations and other facilities in determination of rental values. Regression analysis method has been used for the purpose. Separate analyses were done for the overall scenario [all six wards] and for each of the wards as well. These two separate analyses reveal the differences in the roles attributes play in the overall context and as well in the two scenarios of inner city areas and outer city areas. This current study is suitable as a predictor for rental values in the local area studied and thus for better management of the housing stock from the perspective that the supplier can know what exactly the people prefer.