This chapter examines the nexus between the housing market and the urban poor. Affordability, tenure security, and good governance were examined. The study has employed questionnaires, focus group discussion, key informant interview, and field observation to collect data. Mixed approaches were used for data analysis. The study has revealed that the poorer segment of the population in the study area has less likely benefited from formal housing schemes. Informal settlement areas seem affordable only to some households who have the economic potential in the early years of land transaction (2003/04-2005/06). Tenure insecurity has reached its climax first with the demolition of about 500 houses in the study kebeles in 2011 and then with the promulgation of the new land lease proclamation No721/2011. Decentralized administration has failed to ensure good governance. Therefore, more attention should be given to revisiting housing development programs and projects, taking preventive measures rather than reactive ones, promoting housing finance, and monitoring the decentralization process.
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