1.2. Statement of the Research Problem

Sustained high urbanization and population rates in Ethiopia will put extra pressure on already failing and deteriorated urban infrastructure, services, and housing stock. 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, especially considering the high demand by the low-income sector of the population for affordable housing. In response to this challenge, the Ethiopian government outlined an ambitious vision for low-income urban and housing development, formulated as the Integrated Housing Development Program (IHDP), since 2005, for all slums to be cleared within ten years
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). Through the construction of durable, fully-serviced housing units the program greatly improves their living conditions and their access to basic services. However, though the condominium housing program has become an increasingly important way for lower income people to own houses of good
Most of these researchers concentrate on the housing conditions in urban areas, low-cost housing projects, housing demands and supplies, housing distribution trends, house prices, prospects and challenges of housing, welfare impact of condominium, cooperative housing and welfare impacts and socio-economic opportunities of living in a condominium. They also concentrate on their study areas based on their own objectives. There is a scarcity of literature touching on Household welfare Impact of Rented House on Urban Households. Addis Ababa has been select as a research setting due to the fact that research works are very little and there are no studies done so far on the living situation in rented houses and household welfare impacts. Consequently, the study is a target to fill this gap.

Therefore, the proposed study will be built on the local literature on Household welfare Impact of Rented House on Urban Households: A case of woreda 08, yeka sub-city, Addis Ababa. Municipal city rental houses (kebele homes) will not discuss in this research because of the contract type, payment duration, minimum rent fee and living environment condition. The scarce availability of reliable and valid data continues to be one of the key obstacles in understanding household welfare impacts of rented houses on urban households in the case of Addis Ababa city