This research has been conducted in the Sululta town of Oromia regional State of Ethiopia withrna general objective of investigating the practice, challenges, and major constraints in housingrnprovision. Thus a review of policy and regulatory as well as opportunities for a better housingrnprovision in the town have been investigated through purposive and random sampling of a totalrnof 377 respondents who were selected from the two kebeles of the town. To achieve the objectivernof the study both qualitative and quantitative methods of data analysis were used. Descriptivernstatistics such as percentage, means, Cross tabulation, graphs, charts, etc. were also used and tornassess the magnitude and direction of the association between the dependent variable of housingrntenure and independent variables with 8 demographic characteristics of the household arnbivariate correlation analysis was used. STATA-12 was used to enter the data into the computerrnfor analysis.rnThe Result of the study shows that Sululta Town is faced with the problem of poor housingrnprovision for urban residents. The analysis of the housing tenure status of the respondentsrnrevealed that a great proportion of respondents do not have their own private houses. Thernmajority 54.91% of is renters, 22.81% informal settlements, and only 23.34% of the housingrnunits are owner-occupied. The housing tenure of the respondents is a strong correlation withrnincome. Despite this, in the study area, the main factors identified as the bottleneck for thernprovision of housing include poor access to finance, interference of local brokers in housingrnissues, lack of efficiently and effectively using the existing land and supply, the policy problem,rnthe rapid rate of urbanization and lack of the efforts of urban administration to address thernproblem. In addition to these factors, household demographic characteristics such as genderrncomposition, length of continuous residence in the town and monthly income of the householdsrnaffect access to the housing of the respondents in the town. Moreover, income is relatively, strongrncorrelation, and significant association with housing tenure. The survey result reveals that thernpoor housing provision is increasing rental housing prices, affects the socio-economic life ofrnindividuals, forced to evict informal settlement conditional and unconditional time, and beingrnunable to get adequate rent and formal houses for large family size in the study area.rnTherefore, it was recommended that responsible bodies better pay attention to the issue ofrnimproving the current problem of housing provision in the town. It is important to re-design thernprogram of the lease and implementation, it is better to giving priority for urban poor andrnlegalized the existing informal settlement to minimize the problem and controlling unplannedrngrowth of urbanization, it is important to design or make effort to attract involvements ofrncommunity, private enterprises, NGOâ€™S and integrated development plan with Addis Ababarnparticularly in housing provision for urban residents and it is important to recognize a strategyrnthat should be included the issue of social and economic development new city in rural areas.