In urban areas, housing service is a pressing issue and challenge for local governance's to provide at a required standard both in quality and quantity. There is a great disparity between the provision of housing services and the existing demand in the city in relation to the current rate of urbanization. Accordingly, the housing problem is increasing from time to time in the city because of the mismatch between the existing housing facility provision capacity and population growth.

The existing houses are also under standard and with low quality that damages the social health and reduces esthetic view and beautification of the city. The majority of the houses exist at old residential areas and center of the city are a shanty and slam houses because majority of them are kebele houses those which have been very aged and dilapidated that necessitate maintenance and upgrading services.

Majority of the people lived in these areas are also the marginalized and low-income groups. Currently, the provision of condominium houses has solved the housing problem for many people. But the affordability issue is the other problem and it is not the poor centered. So, it is important to implement low cost house, poor centered and all inclusive housing development program at the city level.

The existing data indicates that 2228 condominium houses were constructed and transferred for beneficiaries. In addition to these houses, 7078 kebele houses and 665 are those managed under housing department with different standards are available in the city. The information obtained from the housing development and management department also reveals that 19,300 people were registered for house and 2,228 people got the chance and become the owner up to the end of 2006E.C. It is import here to notice that there is no any attempt of such type of construction to alleviate this serious deep rooted problems of the dwellers.