Abstract:
Informal settlements in developing countries constitute one of the most intriguing forms of
urbanization. However, factors and theories underpinning this rapid and prevalent dynamic
of informal settlements are often restricted to the descriptive phase. The purpose of this study
is to assess informal settlements and its Socio-economic factors in Hossana town. In order to
achieve the study’s objective, this study has employed descriptive survey research design.HHs
heads were carried out 319 samples through both simple random sampling and purposive
sampling technique has been employed in three Kebeles: Areda, Bethel and Sech duna
Kebeles. This study was designed to carefully and adequately gather primary data source
making use of questionnaire, key informant interview, and field observation. While the
secondary data source was collected through content or document analysis. Major findings of
the study indicate that emergence of Informal settlements in the study area is a recent
phenomenon that has occurred. In addition, the trends of informal settlements were very fast
at Sech-duna by the trend value 0.07 per year than the remaining two Kebeles. Lack of
participative performance on national urban land lease policy; insecurity of land tenure
to owners; and the gap between demand and supply of land seek as the factors for
the expansion of informal settlements in Hossana town. And illegal actors behind informal
settlement were networked government bureaucrats and brokers, means of making profit are
other factors that have contributed to the emergence and proliferation of informal settlements.
Out of 319 the sample respondents of household heads, 77% obtained by fools gift or without
legal certification. The problem of informal settlements in Hossana town has been attributed
to deficits in housingsupply, high home rent and expensive land tender price.The implementati
on of good land administration model is appropriate to reduce the major constraints.