This study exammes one of the welfare Issues, housing condition inrnAddis Ababa. It uses the case of employees of public and private sectorrn(employees of Ministry of education and Awash Bank to add to the bodyrnof empirical knowledge. The main objective of the paper was to assess thernhousing situation of employees and also to examine if an associationrnexists between housing condition and household characteristic factors ofrnemployees. A total of 195 employees were selected using probabilityrnproportionate to size with systematic sampling techniques.rnThe results of the study in general revealed that the housing conditionsrnof employees are found in poor condition (substandard) when measuredrnin terms of physical conditions of the houses, access to basic housingrnamenities and facilities, and crowding. Also, majority of the employees dornnot have their own dwelling units.rnThe empirical analysis based on multiple regresslOn analysis usmgrnstepwise method revealed that access to basic housing amenities andrnfacilities IS influenced by marital status and educational level ofrnemployees. Sex, marital status educational level and mcome ofrnemployees affect the type of construction materials used for a dwelling.rnThe level of occupancy of room and ownership of a home is determinedrnby marital status and age of employees. Providing quality housing byrnproviding access to credit and loan facilities is an important factor for thernoverall development.