The motivations of microfinance institutions to enter the housing market in a developing country

Francis Kwesi Bondinuba, Mark Stephens, Colin Anthony Jones, Robert Buckley

Research output: Contribution to journalArticle

Abstract

Microfinance is a potential powerful avenue to support the lowest socioeconomic groups in the housing market of developing countries. The purpose of this article is to consider what motivates microfinance institutions (MFIs) to enter the housing market through a factor analysis approach. A survey of 125 respondents was undertaken in two regions of Ghana. Factor analysis was conducted to identify underlying latent variables that had significant effects on MFIs’ decision to enter the housing market. The findings indicate that four important determinants emerge: MFIs' interest for profit, the ease of entry into the housing market, interest for growth, and the perceived desire of the lowest socioeconomic groups for homeownership. The study also implies that some nuances help explain the demand and supply perspectives of housing microfinance in developing countries.

Original languageEnglish
JournalInternational Journal of Housing Policy
Early online date11 Feb 2020
DOIs
Publication statusE-pub ahead of print - 11 Feb 2020

Keywords

  • Emerging markets
  • Ghana
  • homeownership
  • housing microfinance
  • low income housing

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Management, Monitoring, Policy and Law

Fingerprint Dive into the research topics of 'The motivations of microfinance institutions to enter the housing market in a developing country'. Together they form a unique fingerprint.

  • Cite this