Despite rapid urban development and a booming real estate sector, Lagos is struggling to house its growing population. A new housing market report has revealed that the state’s housing deficit has surged to 3.4 million units, up from 2.95 million a decade ago.
More than 70% of Lagos residents still rent their homes, often at high cost, while homeownership remains out of reach for most.
Affordable Housing Lags Behind Rising Population
The State of Lagos Housing Market Report (Vol. 3), published by the Roland Igbinoba Real Foundation for Housing and Urban Development (RIRFHUD), shows a glaring mismatch between available homes and what Lagosians can actually afford. While luxury apartments continue to flood the market in elite areas like Lekki, Ikoyi, and Victoria Island, middle- and low-income earners are increasingly pushed into overpriced rentals or informal settlements.
In highbrow areas, short-let and serviced apartments now yield between 15–18% returns, yet mainland communities are seeing growing vacancy rates as affordability collapses.
The Rich Get Homes, the Masses Get Pushed Out
While developers continue to chase high-end projects, the majority of Lagos residents are left behind. The report notes that less than 5% of new homes are priced below ₦15 million, yet many earn below ₦100,000 per month. That means most people are locked out of formal housing unable to buy and struggling to pay rent.
The middle class is feeling the pinch too. One developer noted, “The market is flooded with 3- to 5-bedroom luxury units, but the people who need homes the most can’t afford them.”
Policy Gaps, Land Bottlenecks, and Infrastructure Deficits
Beyond affordability, the report identifies land titling delays, permit issues, and rising construction costs as major problems. Some developers report that bureaucracy can add 15–20% extra cost to any project.
Additionally, poor drainage, bad roads, and electricity shortages discourage expansion into areas like Ikorodu, Alimosho, and Badagry where demand is high but supply is almost nonexistent.
Population Growth Is Outpacing Housing Delivery
With over 600,000 people moving into Lagos every year, the housing pressure is mounting. Youth and professionals under 35 years represent a huge segment of renters, yet they face job insecurity and no access to credit. New housing trends like co-living and micro-apartments are emerging, but their supply remains limited.
Meanwhile, high-net-worth individuals and diaspora buyers are snapping up properties in Banana Island, Eko Atlantic, and Victoria Island—pushing prices in some locations up by 20–60% in just a year.
Short-Lets and Airbnb Models Reshape the Housing Market
In a bid to boost income, many investors now convert homes into short-lets or Airbnbs, particularly in areas with strong business and tourist activity. While profitable in the short term, this trend reduces long-term rental supply and exacerbates scarcity for regular residents.
Imported Building Materials Add to the Crisis
The report also blames the worsening affordability crisis on Nigeria’s heavy dependence on imported construction materials. With the naira devaluation, port charges, and logistics hurdles, items like tiles, fittings, windows, and steel are now significantly more expensive further inflating house prices.
What the Government Is Doing and What Still Needs Work
At the report’s launch, Lagos State Governor Babajide Sanwo-Olu, represented by Sam Egube, acknowledged the challenges but highlighted ongoing reforms. These include:
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Digitised land records via the Electronic Geographic Information System (e-GIS)
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Mass transit expansion (Red Line, Blue Line, BRT corridors)
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Green building standards and smart urban planning
He described these moves as steps toward transit-oriented development—linking housing to jobs and opportunity. However, stakeholders still say more action is needed to bridge the gap between policy and people.
Experts Say the City Must Refocus on Inclusive Housing
Dr. Roland Igbinoba, Executive Vice Chairman of RIRFHUD, called the report “a mirror of Lagos’ real estate reality.” According to him, while the city’s luxury property market is thriving, it’s also becoming dangerously detached from the needs of the broader population.
“This isn’t just about statistics—it’s about human lives,” he said. “If Lagos truly wants to be a resilient city, its housing policy must reflect the struggles and realities of its 20 million residents.”
