Lagos Deputy Governor Obafemi Hamzat has advised residents struggling with rising accommodation costs to consider sharing rent or living with their parents, drawing fresh attention to the growing pressure on household housing budgets across the state.

Hamzat’s remarks come against the backdrop of strong demand for residential property in Lagos, where population growth, limited affordable housing supply and high development costs continue to shape the rental market. The comments have also renewed discussion about the gap between household incomes and the cost of securing decent accommodation.

Rising Costs Continue to Affect Lagos Households

Housing affordability remains a major concern for many residents. The cost of accommodation is influenced not only by rent but also by land prices, construction materials, financing, infrastructure and the wider cost of property development.

For tenants, the financial burden can extend well beyond annual rent. Agency and legal fees, service charges, transportation and other household expenses can significantly increase the amount residents need to spend to secure and maintain accommodation.

Against this backdrop, shared housing can provide short-term relief by allowing occupants to divide rent and other household expenses. The arrangement may be particularly relevant to young workers, students and people at the early stages of their careers who may find it difficult to shoulder the full cost of a housing unit.

However, sharing accommodation does not address the underlying shortage of affordable homes. It is primarily a household response to high housing costs rather than a substitute for expanding the supply of decent housing.

Housing Affordability Extends Beyond Rent

The affordability challenge in Lagos is also closely linked to location. A property with lower rent may not necessarily be cheaper to live in if it is located far from employment centres or lacks efficient transport connections.

Residents who move to less expensive areas on the outskirts of the city may face longer commutes and higher transportation expenses. This can reduce, or in some cases eliminate, the financial savings achieved through lower rent.

Access to infrastructure also matters. Electricity, water, roads and other essential services can influence the actual cost of living in a residential area. For policymakers and developers, this means housing affordability must be considered alongside transportation, infrastructure and access to jobs.

Construction Costs Limit Affordable Housing Supply

The cost of developing new homes remains another major obstacle. Developers contend with expenses associated with land, cement, steel, labour, transportation, financing and infrastructure.

When these costs rise, developers may need to charge higher prices or rents to make projects financially viable. This creates a challenge for the delivery of housing targeted at low- and middle-income households.

Measures that improve access to serviced land, reduce infrastructure costs, support local production of construction materials and expand affordable housing finance could help lower the cost of delivering new homes.

Greater Private Sector Participation Needed

Government housing programmes can increase supply, but the scale of demand in Lagos means private developers and institutional investors will remain important to any sustained response to the affordability challenge.

Public-private partnerships could help mobilise additional capital for affordable and middle-income housing. Government support through land provision, infrastructure, streamlined approvals and appropriate financing incentives could improve the viability of projects aimed at households with limited purchasing power.

The location of affordable housing will also remain important. Developments that are inexpensive but poorly connected to transport networks and employment centres may not provide lasting relief to residents.

Housing and Transport Must Be Planned Together

Lagos’ housing challenge is closely connected to its transportation system. As housing costs increase in established areas, households may move farther from major employment and commercial centres in search of cheaper accommodation.

The resulting longer journeys can increase transport costs, congestion and commuting times. Better coordination between housing development, land-use planning and public transportation could therefore improve the overall affordability of living in the state.

Long-Term Solution Requires More Affordable Homes

While shared accommodation and living with family can help households manage immediate financial pressures, they cannot replace a sustained increase in housing supply.

Lagos will need housing across different income categories, supported by infrastructure, efficient planning and access to transportation. Policies that reduce development costs and encourage investment in affordable housing could help narrow the gap between available homes and what residents can realistically afford.

For the real estate sector, the affordability challenge also signals continuing demand for housing that is aligned with household incomes. The wider significance of Hamzat’s remarks is that household coping strategies can provide temporary relief, but lasting improvement will depend on expanding affordable housing supply and addressing the costs associated with developing and living in Lagos.

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