Abstract:
This study was conducted in Deder town of Eastern Hararghe with the general objective of
assessing challenges of urban housing provision. In order to accomplish the stated objectives of
the research, both primary and secondary data were collected from 378 sample house hold
heads and analyzed using descriptive statistics such as percentage, tabulation, frequency, and in
addition, likert scale and SPSS v 20 were employed to enter the data in to the computer for
analysis. The study found that, provision of housing for the town residents are affected by high
cost of local constructional materials, low level of income the majority of the residents, high
housing costs and low capacity of the majority of the residents to afford for urban land in the
study area. As the result, majority of the residents were forced in privately rented residential
units. This is because of common factors that related to financial constraints, low income, and
current general inflation, lack of enough open space and imbalance housing demands and
supplies. Therefore, there was inadequate housing provision in the town. recommendations:
government should build low-cost houses to cater for the large number of people who, due to
their low-income earnings could not afford a decent rented house. It is important to design the
program of houses emphasis and should take priority that includes allocation of budget,
regulating rapid population growth and controlling unplanned growth of urbanization, it is
important to design or make effort to attract involvements of community, private enterprises and
NGO’S in housing provision and it is important the issue of social and economic development of
rural areas in order to reduce increased rural-urban migration.