The Median Multiple and its Implications for Housing Affordability in Addis Ababa, Ethiopia

Housing affordability has become a critical concern in Addis Ababa due to rapid urbanization, rising housing prices, and limited income growth. This study examines the affordability of housing across sub-cities, focusing on median house prices for villas, apartments, and condominiums, and their relationship to median household income. Data were primary collected from secondary sources, including the Ethiopian Statistical Service, Ministry of Urban and Infrastructure, and World Bank reports, and informal sources, including local residents, and housing brokers. Descriptive statistical analysis, including mean, median, standard deviation, coefficient of variation and median multiple, were employed to evaluate price levels, variability, and affordability. The results reveal that housing in Addis Ababa is extremely unaffordable for middle and low income households, particularly in high-demand sub-cities, where median multiples far exceed internationally recommended thresholds. Variability in prices reflects heterogeneity in the housing market. The study highlights the urgent need for targeted policies to expand affordable housing, regulate speculative pricing, and provide accessible housing options for middle-income residents.

The Median Multiple, Housing Affordability, Addis Ababa, Urban Housing

1. Abt Associates & NYU Furman Centre. (2023). Housing affordability challenges in urban areas: Causes and policy responses. New York, NY: NYU Furman Centre. [Google Scholar] [Crossref]

2. Addis Ababa Urban Planning Bureau. (2019). Urban housing development and infrastructure report. [Google Scholar] [Crossref]

3. Addis Ababa, Ethiopia: Urban Planning Bureau. [Google Scholar] [Crossref]

4. Addis Standard. (2024, July 1). Study finds median wage in Ethiopia at 3,000 birr; ILO pushes for minimum wage reform. Retrieved from https://addisstandard.com/study-finds-median-wage-in-ethiopiaat-3000-birr-ilo-pushes-for-minimum-wage-reform/ [Google Scholar] [Crossref]

5. Alemayehu, T., & Assefa, B. (2019). Housing affordability and informal settlements in Addis Ababa. Journal of Ethiopian Urban Studies, 5(2), 45–63. [Google Scholar] [Crossref]

6. Angel, S., Parent, J., Civco, D., & Blei, A. (2016). Atlas of urban expansion. Lincoln Institute of Land Policy. [Google Scholar] [Crossref]

7. Angel, S., Sheppard, S. C., & Civco, D. L. (2012). The dimensions of global urban expansion: Estimates and projections for all countries, 2000–2050. Washington, DC: Lincoln Institute of Land Policy. [Google Scholar] [Crossref]

8. Bentley, R., et al. (2016). Housing affordability, tenure and mental health. Social Science & Medicine, 153, 1–9. [Google Scholar] [Crossref]

9. Center for Affordable Housing Finance. (n.d.). Housing affordability data for Ethiopia. Retrieved from https://housingfinanceafrica.org [Google Scholar] [Crossref]

10. Chander, S. (2022). Factors affecting housing affordability: A socio-economic perspective. Journal of Housing and Urban Development, 15(2), 45–61. [Google Scholar] [Crossref]

11. Demographia. (2023). Demographia international housing affordability survey: 19th annual report. Urbana, IL: Demographia. [Google Scholar] [Crossref]

12. Desmond, M., & Gershenson, C. (2016). Housing and educational instability. Social Problems, 63(1), 1–28. [Google Scholar] [Crossref]

13. Desta, H., Teshome, A., & Berhanu, G. (2017). Urban housing challenges in Addis Ababa: Affordability and informal settlements. Ethiopian Journal of Development Studies, 10(1), 21–39. [Google Scholar] [Crossref]

14. Elshadai Baja, A. (2017). Measuring housing affordability: Concepts and applications in developing countries. International Journal of Housing Policy, 17(4), 500–518. https://doi.org/10.1080/14616718.2017.1334912 [Google Scholar] [Crossref]

15. Ernawati, M., Mustafa, M., & Kamal, R. (2016). Housing affordability and urban development: An empirical review. International Journal of Housing Policy, 16(1), 1–20.https://doi.org/10.1080/14616718.2015.1111234 [Google Scholar] [Crossref]

16. Ethiopian Statistical Service & World Bank. (2023). Ethiopia socioeconomic panel survey (ESPS) report Wave 5, 2021/22. Retrieved from https://microdata.worldbank.org/index.php/catalog/6161 [Google Scholar] [Crossref]

17. Ethiopian Statistics Service. (2023). Key findings on the 2022 urban bi-annual employment unemployment survey. Ethiopian Statistics Service. [Google Scholar] [Crossref]

18. Evans, G. (2019). Housing and mental health: The impact of housing stress. Journal of Urban Health, 96(4), 564–577. [Google Scholar] [Crossref]

19. Gebre, T., & Singh, R. (2022). The dynamics of housing affordability in Ethiopian cities. International Journal of Housing Policy, 22(1), 123–144. [Google Scholar] [Crossref]

20. https://doi.org/10.1080/14616718.2021.1901234 [Google Scholar] [Crossref]

21. Gebrehiwot, T., Tesfaye, B., & Bekele, M. (2019). Housing affordability and urbanization in Addis Ababa. Ethiopian Journal of Social Development, 8(2), 77–96. [Google Scholar] [Crossref]

22. Glaeser, E., & Gyourko, J. (2018). The economic implications of housing supply. Journal of Economic Perspectives, 32(1), 3–30. [Google Scholar] [Crossref]

23. Huchzermeyer, M. (2009). Housing rights in South Africa: The struggle for access to adequate housing. Pretoria, South Africa: University of Pretoria Press. [Google Scholar] [Crossref]

24. Huchzermeyer, M. (2011). Cities with ‘slums’: From informal settlement eradication to a right to the city in Africa. Cape Town, South Africa: UCT Press. [Google Scholar] [Crossref]

25. Imis Ethiopia. (2024). Trends in size and distribution of wealth in Addis Ababa. Addis Ababa: Imis Ethiopia. Retrieved from [Google Scholar] [Crossref]

26. https://imisethiopia.gov.et/redatam/docs/Research_%20Wealth_Distribution_Final_Study_MARCH_26_ 2024.pdf [Google Scholar] [Crossref]

27. Krieger, J., & Higgins, D. (2002). Housing and health: Time again for public health action. American Journal of Public Health, 92(5), 758–768. [Google Scholar] [Crossref]

28. Larsen, J., & Yeshitela, K. (2021). Evaluating the Integrated Housing Development Program in Ethiopia. African Housing Studies, 14(3), 55–72. [Google Scholar] [Crossref]

29. Lemma, D., & Haile, T. (2020). Housing affordability and policy interventions in Ethiopia. Ethiopian Journal of Urban Studies, 6(1), 55–72. [Google Scholar] [Crossref]

30. Massey, D., & Denton, N. (1993). American apartheid. Harvard University Press. [Google Scholar] [Crossref]

31. Mekasha, T. J. (2025). Urban poverty dynamics and the working poor in Ethiopia. Retrieved from https://povertyevidence.org/wp-content/uploads/2025/07/Urban-Poverty-Dynamics-and-the-WorkingPoor-in-Ethiopia.pdf [Google Scholar] [Crossref]

32. Mulugeta, G., & Worku, A. (2020). Urban housing challenges in Addis Ababa: Costs, supply, and affordability. Addis Ababa University Press. [Google Scholar] [Crossref]

33. OECD. (2021). Housing affordability in OECD countries. Organisation for Economic Co-operation and Development. [Google Scholar] [Crossref]

34. OECD. (2021). Housing affordability in OECD countries. Organisation for Economic Co-operation and Development. [Google Scholar] [Crossref]

35. Payscale. (2025). Average salary in Addis Ababa, Ethiopia. Retrieved from https://www.payscale.com/research/ET/Location%3DAddis-Ababa/Salary [Google Scholar] [Crossref]

36. Stone, M. E. (2006). What is housing affordability? Housing Studies, 21(2), 1–20. [Google Scholar] [Crossref]

37. https://doi.org/10.1080/02673030600554676 [Google Scholar] [Crossref]

38. Tadesse, M., & Teferra, S. (2021). Government housing programs and social equity in Addis Ababa. Ethiopian Journal of Public Policy, 12(2), 101–120. [Google Scholar] [Crossref]

39. U.S. Department of Housing and Urban Development. (n.d.). Affordability guidelines for households. Washington, DC: HUD. [Google Scholar] [Crossref]

40. UN-Habitat. (2014). The state of African cities 2014: Re-imagining sustainable urban transitions. Nairobi, Kenya: United Nations Human Settlements Programme. [Google Scholar] [Crossref]

41. UN-Habitat. (2016). World cities report 2016: Urbanization and development—Emerging futures. Nairobi, Kenya: United Nations Human Settlements Programme. [Google Scholar] [Crossref]

42. UN-Habitat. (2020). Ethiopia: Urbanization and housing trends. Nairobi, Kenya: United Nations Human Settlements Programme. [Google Scholar] [Crossref]

43. UN-Habitat. (2020). World cities report: The value of sustainable urbanization. United Nations Human Settlements Programme. [Google Scholar] [Crossref]

44. World Bank. (2020). Innovative approaches to affordable housing. World Bank Group. [Google Scholar] [Crossref]

• Navigating Climate Challenges in Tourism: Sustainable Practices and Innovative Approaches
• Siberia and the Far East: Development vs. Sustainability
• From Potable Water to Drinking Water: A Conceptual Clarification Based on Individual Boreholes in African Peri-Urban Areas
• Traditional Agricultural Equipment’s and Using Techniques of the Santal Tribe in the Context of Tourism Development
• Dynamics of the Development of Natural Gravitational Processes (Landslides) In the Medium-Mountain Regions of Georgia: The Case of Imereti (2010–2022)