The Interplay Between Urban Political Economy and Formal Homeownership: Evidence from Ethiopia

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Vol. 2 No. 1 (2026): In Progress

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Debele, E. T., Negussie, T., Mulugeta, S., & Asres, K. (2025). The Interplay Between Urban Political Economy and Formal Homeownership: Evidence from Ethiopia. Urban-Regional Ecology, 2(1), 1-18. https://doi.org/10.65773/ure.2.1.60

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Efa Tadesse Debele*
Samara University, Semera, Afar, Ethiopia
Taye Negussie
Addis Ababa University, Addis Ababa, Ethiopia
Solomon Mulugeta
Addis Ababa University, Addis Ababa, Ethiopia
Kassahun Asres
Addis Ababa University, Addis Ababa, Ethiopia

Abstract

This study aimed to examine the nature of the urban political economy and its impacts on formal homeownership in Ethiopian cities. A mixed-methods research design was employed, integrating qualitative and quantitative data. Quantitative data were collected through surveys from 384 randomly selected urban residents, while qualitative data were gathered via in-depth interviews and focus group discussions. All data were analyzed using SPSS 26 for quantitative analysis and thematic analysis for qualitative data, with findings triangulated for interpretation. The results revealed significant statistical relationships between structural factors and housing status. Specifically, the multinomial logistic regression model indicated that residents with structural support (mortgage availability, political favor) were 3.2 times more likely to achieve formal homeownership (Odds Ratio = 3.21, p < 0.01). Conversely, high-risk housing market dynamics and the adaptive capacity of residents to cope with them were negatively and significantly associated with formal homeownership (beta = -0.45, p < 0.001). Furthermore, the data showed a positive correlation between the weak socio-economic capacity of residents and housing segregation (r = 0.61). Thematic analysis highlighted that the regulatory and interactional dimensions of the rental housing market are major explanatory variables contributing to a problematic rental scenario. It was also found that informal housing has become the most common housing market type, fraught with social and economic controversies. The findings suggest that paradoxes inherent in the urban political economy, driven by weak structural support and negative market dynamics, have caused the bleakness and inaccessibility of formal homeownership for the majority of urban residents. The authors recommend the formulation of a housing policy that is sensitive to local socio-economic realities and the prevailing urban political economy.

Keywords:
housing, homeownership, political economy, structural barriers, urbanization

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