Factors affecting affordable housing cost in Saudi Arabia

Abstract

Purpose

The purpose of this paper is to discuss the main factors that affect the construction cost of affordable housing in Saudi Arabia.

Design/methodology/approach

A survey of 14 consultants, 16 contractors and five real estate investors was performed. The survey included 34 different factors affecting the construction cost of affordable houses and their degree of importance. The severity of those factors was measured by the level of importance and ranked according to the severity index for consultants, contractors and real estate investors and a combination of all respondents.

Findings

There is an agreement (correlation) by each group and the overall ranking by all participants. It was concluded that inadequate labor availability, material standards, design quality and design changes are the most severe factors with relatively high overall scoring.

Originality/value

The paper provides a holistic approach that considers all factors affecting affordable housing in Saudi Arabia and the interplay between them. It will serve as a guide to the focus areas to be considered in policy development aiming at improving conditions in the construction industry for affordable housing programs.

Citation

Assaf, S.A., Bubshaitr, A.A. and Al‐Muwasheer, F. (2010), "Factors affecting affordable housing cost in Saudi Arabia", International Journal of Housing Markets and Analysis, Vol. 3 No. 4, pp. 290-307. https://doi.org/10.1108/17538271011080628