by Nigerian News24 Correspondents
Many Nigerian households are struggling financially as soaring housing costs push rent payments to consume up to 70% of their monthly income, according to the latest State of Lagos Housing Market, Volume 3 report.
The report highlights that stagnant wages coupled with sharply rising rents are severely reducing housing affordability and making homeownership increasingly out of reach. It notes that land speculation—where investors buy land solely to resell at inflated prices—is pushing genuine home seekers out of the market. Even remote areas are experiencing high land prices due to expected future developments.
Legalizing land ownership remains costly and complicated, and most Nigerians lack access to mortgages, with steep down payment requirements further limiting home buying opportunities. Developers tend to focus on luxury housing, which offers higher profits, while affordable housing projects receive little incentive or support. The report recommends providing developers with incentives to increase the supply of affordable homes.
Unregulated rent increases have worsened housing insecurity, and the lack of affordable formal housing options has contributed to the growth of informal settlements. Additionally, affordable homes are often located far from workplaces, leading to costly, time-consuming commutes. Many low-cost housing options also suffer from inadequate infrastructure and basic services, lowering residents’ quality of life.
Interviews with residents reveal that the housing crisis is driven by a complex mix of stagnant incomes, market failures, weak regulation, and social inequalities. Rising rents, even on the city outskirts, have pushed many low- and middle-income earners to spend unsustainable portions of their income on housing—well above global affordability standards.
High inflation and soaring construction material costs have made new affordable housing projects financially unfeasible, particularly for small- and medium-scale builders targeting the middle class. This further limits housing supply and fuels price increases in the existing market.
Land market distortions caused by speculation continue to drive up prices artificially, especially in outlying areas, making home ownership increasingly unattainable for average Nigerians.
The State of Lagos Housing Market – 3rd Edition is published by the Roland Igbinoba Real Foundation for Housing and Urban Development, following earlier editions released in 2009 and 2016.