Nigeria’s Soaring Rents: A Real Estate Housing Crisis

Nigeria’s urban residents are facing a housing affordability crisis like never before. Over the past year or two, rents in major cities have doubled, pricing out millions of people and placing significant strain on lots of working-class families. With a 28-million-unit housing deficit, the gap between supply and demand has widened to alarming levels—fuelled by inflation, tax hikes, economic instability, and sluggish construction activity.

What exactly drives Unaffordable Housing?

The current increase in household items is alarming and the price of construction materials are not left out. Investors and developers have to put in so much capital to raise habitable structures - at least for those who have “church mind”, leading to the hike in the cost of housing. 

In Lagos, for instance, what once rented for ₦500,000–₦700,000 now goes for ₦1.2 million–₦1.5 million. On the other hand, three-bedroom homes in Abuja cost ₦6 million–₦15 million, while Port Harcourt’s mini-flats range from ₦500,000–₦600,000. 

Back home in Enugu, a regular 2 bedroom apartment in New Haven costs anywhere from ₦1.7 million to ₦2.2 million. The hike has tenants moving to more affordable outskirts in the hope of coping with rising costs and so, for many Nigerians earning the minimum wage of ₦70,000, over 70% of their income now goes into housing—leaving little or no room for basic needs like food, healthcare, and education.

No Rent Control, No Relief - I mean, this is Nigeria

While a rent control law has been proposed- many even, implementation has not yet seen the light of day. In the meantime, landlords are raising prices arbitrarily, often times without making improvements. Many point to the new minimum wage to justify increases, while tenants continue to suffer. With growing demand from young professionals and hybrid workers, landlords are capitalizing on the shortage by charging a premium for studio and one-bedroom apartments.

So, what are the Experts even saying?

Dr. Sunday Olajide, past chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), describes the situation as one of “housing poverty.” Civil servants and middle-income earners can no longer afford decent homes and are turning to makeshift or substandard alternatives in remote areas, usually far from their places of work further predisposing them to extra transportation costs.

Niyi Fayoju, former chairman of NIESV’s Real Estate Consulting Division, also blames inflation, high demand, and inadequate government support for the current crisis.

A Call for Action

Unless proactive steps are taken—such as subsidized housing, public-private partnerships, and better economic management—Nigeria’s urban housing will remain inaccessible to the average citizen, the basic need of housing will continue to gravitate towards a high premium commodity. 

The solution however, lies in treating housing not just as a commodity but as a fundamental human need.

Missed my article on Sustainable Real Estate Confrence? You can read it here