The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees

Tadele Melaku Chala; Tesfaye Boka Megersa

doi:doi:10.11648/j.ebm.20251106.11

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The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees

Tadele Melaku Chala^*

, Tesfaye Boka Megersa

Published in European Business & Management (Volume 11, Issue 6)

Received: 10 August 2025 Accepted: 3 September 2025 Published: 12 November 2025

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Abstract

This study used cross-sectional data from Ethiopian News Agency employees to examine the effect of living in a rental house on household welfare. The data were obtained from 134 households (67 of which were renters and 67 of which were owners). The households were classified as poor or non-poor based on the poverty line, which was established by the World Bank for household expenditure. Descriptive and binary logistic regression were employed in the study to assess the effects. The finding of the study demonstrated that the average monthly household food and nonfood expenditure per adult, possession of essential household material, consuming a variety of foods, and room occupancy status of a house renter are significantly low compared to house owner-employees. The probability of living below the poverty line is more than twice as high for renter households compared to homeowner households. 33% of the studied employees who are living in rented houses are considered to be living under poverty shelter. The result of the binary logistic regression also showed that living house, household size, and dependency ratio negatively affect the household welfare status, while marital status, age, income, and saving positively affect household welfare. The study suggests several recommendations for the government, including expanding the number of housing construction projects, providing subsidies to home builders, empowering mortgage banks for constructing public housing, and also enacting and implementing policy for setting and managing rental houses.

Published in	European Business & Management (Volume 11, Issue 6)
DOI	10.11648/j.ebm.20251106.11
Page(s)	190-201
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

House Rental Cost, Household Welfare, Poverty Status, Ethiopian News Agency

References

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APA Style

Chala, T. M., Megersa, T. B. (2025). The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. European Business & Management, 11(6), 190-201. https://doi.org/10.11648/j.ebm.20251106.11

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ACS Style

Chala, T. M.; Megersa, T. B. The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. Eur. Bus. Manag. 2025, 11(6), 190-201. doi: 10.11648/j.ebm.20251106.11

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AMA Style

Chala TM, Megersa TB. The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. Eur Bus Manag. 2025;11(6):190-201. doi: 10.11648/j.ebm.20251106.11

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@article{10.11648/j.ebm.20251106.11,
  author = {Tadele Melaku Chala and Tesfaye Boka Megersa},
  title = {The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees
},
  journal = {European Business & Management},
  volume = {11},
  number = {6},
  pages = {190-201},
  doi = {10.11648/j.ebm.20251106.11},
  url = {https://doi.org/10.11648/j.ebm.20251106.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20251106.11},
  abstract = {This study used cross-sectional data from Ethiopian News Agency employees to examine the effect of living in a rental house on household welfare. The data were obtained from 134 households (67 of which were renters and 67 of which were owners). The households were classified as poor or non-poor based on the poverty line, which was established by the World Bank for household expenditure. Descriptive and binary logistic regression were employed in the study to assess the effects. The finding of the study demonstrated that the average monthly household food and nonfood expenditure per adult, possession of essential household material, consuming a variety of foods, and room occupancy status of a house renter are significantly low compared to house owner-employees. The probability of living below the poverty line is more than twice as high for renter households compared to homeowner households. 33% of the studied employees who are living in rented houses are considered to be living under poverty shelter. The result of the binary logistic regression also showed that living house, household size, and dependency ratio negatively affect the household welfare status, while marital status, age, income, and saving positively affect household welfare. The study suggests several recommendations for the government, including expanding the number of housing construction projects, providing subsidies to home builders, empowering mortgage banks for constructing public housing, and also enacting and implementing policy for setting and managing rental houses.
},
 year = {2025}
}

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TY  - JOUR
T1  - The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees

AU  - Tadele Melaku Chala
AU  - Tesfaye Boka Megersa
Y1  - 2025/11/12
PY  - 2025
N1  - https://doi.org/10.11648/j.ebm.20251106.11
DO  - 10.11648/j.ebm.20251106.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 190
EP  - 201
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20251106.11
AB  - This study used cross-sectional data from Ethiopian News Agency employees to examine the effect of living in a rental house on household welfare. The data were obtained from 134 households (67 of which were renters and 67 of which were owners). The households were classified as poor or non-poor based on the poverty line, which was established by the World Bank for household expenditure. Descriptive and binary logistic regression were employed in the study to assess the effects. The finding of the study demonstrated that the average monthly household food and nonfood expenditure per adult, possession of essential household material, consuming a variety of foods, and room occupancy status of a house renter are significantly low compared to house owner-employees. The probability of living below the poverty line is more than twice as high for renter households compared to homeowner households. 33% of the studied employees who are living in rented houses are considered to be living under poverty shelter. The result of the binary logistic regression also showed that living house, household size, and dependency ratio negatively affect the household welfare status, while marital status, age, income, and saving positively affect household welfare. The study suggests several recommendations for the government, including expanding the number of housing construction projects, providing subsidies to home builders, empowering mortgage banks for constructing public housing, and also enacting and implementing policy for setting and managing rental houses.

VL  - 11
IS  - 6
ER  -

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Author Information

Tadele Melaku Chala

Department of Economics, Ambo University, Ambo, Ethiopia

Contact Email

http://orcid.org/0000-0001-5694-7322
Tesfaye Boka Megersa

Ethiopian News Agencies, Addis Ababa, Ethiopia

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Plain Text BibTeX RIS

APA Style

Chala, T. M., Megersa, T. B. (2025). The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. European Business & Management, 11(6), 190-201. https://doi.org/10.11648/j.ebm.20251106.11

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ACS Style

Chala, T. M.; Megersa, T. B. The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. Eur. Bus. Manag. 2025, 11(6), 190-201. doi: 10.11648/j.ebm.20251106.11

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AMA Style

Chala TM, Megersa TB. The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees. Eur Bus Manag. 2025;11(6):190-201. doi: 10.11648/j.ebm.20251106.11

Copy | Download

@article{10.11648/j.ebm.20251106.11,
  author = {Tadele Melaku Chala and Tesfaye Boka Megersa},
  title = {The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees
},
  journal = {European Business & Management},
  volume = {11},
  number = {6},
  pages = {190-201},
  doi = {10.11648/j.ebm.20251106.11},
  url = {https://doi.org/10.11648/j.ebm.20251106.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20251106.11},
  abstract = {This study used cross-sectional data from Ethiopian News Agency employees to examine the effect of living in a rental house on household welfare. The data were obtained from 134 households (67 of which were renters and 67 of which were owners). The households were classified as poor or non-poor based on the poverty line, which was established by the World Bank for household expenditure. Descriptive and binary logistic regression were employed in the study to assess the effects. The finding of the study demonstrated that the average monthly household food and nonfood expenditure per adult, possession of essential household material, consuming a variety of foods, and room occupancy status of a house renter are significantly low compared to house owner-employees. The probability of living below the poverty line is more than twice as high for renter households compared to homeowner households. 33% of the studied employees who are living in rented houses are considered to be living under poverty shelter. The result of the binary logistic regression also showed that living house, household size, and dependency ratio negatively affect the household welfare status, while marital status, age, income, and saving positively affect household welfare. The study suggests several recommendations for the government, including expanding the number of housing construction projects, providing subsidies to home builders, empowering mortgage banks for constructing public housing, and also enacting and implementing policy for setting and managing rental houses.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - The Effect of Living in Rental House on the Household Welfare: Evidence from Ethiopian News Agency’s Employees

AU  - Tadele Melaku Chala
AU  - Tesfaye Boka Megersa
Y1  - 2025/11/12
PY  - 2025
N1  - https://doi.org/10.11648/j.ebm.20251106.11
DO  - 10.11648/j.ebm.20251106.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 190
EP  - 201
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20251106.11
AB  - This study used cross-sectional data from Ethiopian News Agency employees to examine the effect of living in a rental house on household welfare. The data were obtained from 134 households (67 of which were renters and 67 of which were owners). The households were classified as poor or non-poor based on the poverty line, which was established by the World Bank for household expenditure. Descriptive and binary logistic regression were employed in the study to assess the effects. The finding of the study demonstrated that the average monthly household food and nonfood expenditure per adult, possession of essential household material, consuming a variety of foods, and room occupancy status of a house renter are significantly low compared to house owner-employees. The probability of living below the poverty line is more than twice as high for renter households compared to homeowner households. 33% of the studied employees who are living in rented houses are considered to be living under poverty shelter. The result of the binary logistic regression also showed that living house, household size, and dependency ratio negatively affect the household welfare status, while marital status, age, income, and saving positively affect household welfare. The study suggests several recommendations for the government, including expanding the number of housing construction projects, providing subsidies to home builders, empowering mortgage banks for constructing public housing, and also enacting and implementing policy for setting and managing rental houses.

VL  - 11
IS  - 6
ER  -

Copy | Download