Analysis of sustainability and regulatory compliance of land allotment for cooperative housing development in Ethiopia

The rapid urban expansion and unresponsive property market in Ethiopia pose a significant housing crisis. In secondary cities, land allotment for cooperative housing development is a viable solution for addressing housing demand. This study aimed to identify the intertwined socioeconomic, environmental, institutional, and procedural challenges that undermine the sustainability of cooperative housing. Exploratory factor analysis (EFA) was used to analyze 22 variables into five factors. Focus group discussions and key informant interviews substantiate the survey result of 357 respondents. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO=0.882) and Bartlett's Test of Sphericity (significance value=0.000) confirmed both the suitability of EFA and adequacy of sampling. The identified challenges include affordability constraints and financial barriers, lack of inclusivity and transparency, informality, inadequate infrastructure and weak governance, environmental management and security, as well as inefficient land use and ineffective regulatory frameworks. The rotation sums of squared loadings for the five factors explained 82.576% of the total variance, suggesting that interventions targeting these factors could address the majority of sustainability problems. The highest factor loading was 0.946 (infrastructure provision) and the lowest was 0.687 (institutional coordination). The findings underscore the urgent need for integrated policy reform to improve financing mechanisms, regulatory alignment, and sustainability integration in Ethiopia’s cooperative housing sector. The inefficiencies in land use, infrastructure delivery, mortgage financing systems, government subsidies, waste management systems, and informality demand significant policy and regulatory improvements, governance coordination, environmental integration, and inclusive planning. Findings suggest the need for revolving housing funds, streamlined land acquisition, and integrated governance reforms to enhance cooperative housing sustainability in Ethiopia.