THE IMPACT OF STUDENT POPULATION ON RENTAL VALUE AROUND THE POLYTECHNIC NEIGHBOUHOOD (CASE STUDY OF RUFUS GIWA POLYTHECNIC OWO)
1.1 BACKGROUND TO THE STUDY
Tertiary institution is viewed as a magnet in the metropolitan area that attracts people and economic activity towards it (O‟Flaherty, 2005). In recent time the Nigeria government has shown strong commitment to growth in higher education sector by the establishment of more institutions especially polytechnics and the liberalization of its ownership. While this is the focus of the government little or no attention is given to the provision of accommodation in the polytechnic to meet the rising student population. As a result of this majority of the student population take solace in the rental market for alternative accommodation. The demand has resulted in the establishment of niche market because student’s market especially appears to be robust. Hence, Peacocke (1999) opined that the major characteristics of students demand is that it monopolizes the market thereby reducing supply to other tenant groups. For instance, close to 80% of students’ populations of the Rufus Giwa polytechnic, Owo, Ondo State are living in privately rented accommodation. The result of this is a sharp increase in rent since the available housing accommodation even in the rental market are not enough to meet the demand. In the past, houses were completed by landlords or property investors, but today, students struggle to make payment even when such accommodation are yet to be completed.
The landlords and investors exploit this situation and rents are arbitrary fixed and outrageous. Therefore, this study aims at investigating the impact of student population on the rental values around the polytechnic neighborhood.
Polytechnic as a social institution is seen as a great system concerned with imparting knowledge and skills, which help an individual to participate in the society (Ramon-Yusuf, 2003). Babalola and Okediran (1997) views Polytechnic education as that which facilitates creation of knowledge and innovation for the overall socio-economic empowerment of the individual and community development. Historically in Nigeria, majority of the Polytechnics were located at the community outskirts so as to create conducive environment for learning; less difficulty in getting required land size and the minimum financial implication attached. However, these polytechnics including the Rufus Giwa Polytechnic, Owo have enjoyed circumferential expansion in their neighborhoods primarily because of the functions they perform.
A polytechnic may generate different sort of impacts in a neighborhood. The presence of a polytechnic in a derelict area may initiate the transformation of the entire neighbourhood through the action of development, regenerating houses in order to attract students, staff, and those providing support services to live nearby (Perry and Wiewel, 2005). More also, polytechnic can also function completely apart from the surrounding neighborhoods, ignoring social problems (Anamaria and Melchior, 2007).
Anamaria and Melchior (2007) used two concepts to analyze the impacts produced by the presence of a tertiary institution in an area: to include magnets and enclave. The first concept used to describe the impacts of large land owners such as the polytechnic is the “magnet”. In urban terms, magnet represents a concept or metaphor which describes a territory in the metropolitan area which attracts people and economic activity towards it. Polytechnics can be qualified as magnets since they have the power of attracting many students, schools/faculties and staff as well as business and institutional activities to a specified region in a town. Polytechnics, when acting as a magnet, besides attracting uses that promote urban and economic growth, attracts activities regarded as damaging by particular groups in the society (Anamaria and Melchior, 2007). The second concept used to describe the impact of large land owners such as the polytechnics is the “enclave”. A new enclave represents a self contained place or region of the city, with uses or morphology different from the one of the surrounding neighborhood (Anamaria and Melchior, 2007).
According to Perry and Wiewel (2005), a polytechnic has traditionally seen itself as an enclave, “removed enough from the immediacy and demands of modern life to produce the knowledge and information with which to better understand the society”. Depending on the externality, the role of polytechnics as magnets most times overcomes their features as enclaves. Therefore, the concepts of magnets and enclaves represent an important methodological tool in the analysis of the impacts and externalities by the polytechnics on their neighborhoods (Anamaria and Melchior, 2007). Polytechnics and colleges primarily acquire land and structures that support their core mission or immediate growth demands, it is however not uncommon for surrounding communities to criticize polytechnics for their unresponsive development policies or lack of a plan to mitigate negative spillover effects (Sungu-Erylimaz, 2009). For neighbourhood residents, some of the major concerns relate to quality of life issues, such as conversion of houses and other buildings to student occupancy; upward pressure on rents; adaptation of shops and facilities to student markets; and increase in traffic, noise, and parking problems (Harasta, 2008)
1.2 STATEMENT OF THE PROBLEM
Ankali (2007) carried out a study on the impact of tertiary institutions on residential property values in the Federal Polytechnic, Ede and found out that the establishment of the polytechnic led to the influx of people into the town, thereby, making the residential property market subsector experience a moderate increase in rental values between 1994 and 1997. Another slight increase was also experienced between 1998 and 1999 and the highest rental increment was observed between 2001 and 2005. However, tenement properties close to the Polytechnic experienced the highest rental growth rate. The researcher is examining in this study the impact of student population on rental value around the Rufus Giwa Polytechnic neighborhood.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
To examine the impact of student population on rental value around Rufus Giwa Polytechnic, Owo.
To examine the relationship between student population and rental value.
To examine the impact of distance from Rufus Giwa Polytechnic Owo on the residential rental value.
1.4 RESEARCH QUESTIONS
What is the impact of student population on rental value around Rufus Giwa Polytechnic, Owo?
What is the relationship between student population and rental value?
What is the impact of distance from Rufus Giwa Polytechnic Owo on the residential rental value?
HO: There is no significant relationship between student population and rental value around Rufus Giwa Polytechnic, Owo.
HA: There is significant relationship between student population and rental value around Rufus Giwa Polytechnic, Owo.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
The outcome of this study will educate the general public especially the higher institutions neighborhood communities on the impact of student population on the rental value.
This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study will cover the relationship between student population and rental value around Rufus Giwa Polytechnic, Owo.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work