Developers and property experts call for cheaper land, stronger housing supply, affordable mortgages and improved regulation.

Nigeria’s housing affordability crisis is deepening as rising property prices, escalating rents and increasing construction costs place homeownership beyond the reach of millions of households.

Real estate developers, estate surveyors and investment professionals attributed the challenge to expensive land, costly building materials, infrastructure gaps, high financing costs, statutory charges and weak household purchasing power.

The stakeholders made the observations while highlighting the need for reforms across Nigeria’s housing value chain.

Rising Construction Costs Drive Property Prices

President of the Real Estate Developers Association of Nigeria (REDAN), Oba Akintoye Adeoye, said rising residential property prices and rents had become a major concern for developers, tenants, prospective homeowners and investors.

Adeoye explained that housing costs were increasing faster than the purchasing power of many Nigerians.

He said policymakers must examine land acquisition, construction, infrastructure, finance, transportation, professional services and regulatory charges instead of focusing only on the final price of properties.

“When the cost of producing a house increases, it inevitably impacts the price of the finished property,” REDAN said.

However, the association cautioned developers against using rising production costs to justify arbitrary pricing or consumer exploitation.

It called for measures to reduce the cost of land, infrastructure, building materials and housing finance, arguing that lower production costs would enable developers to offer more affordable homes.

Experts Demand Affordable Mortgage Financing

Adeoye urged greater access to long-term mortgage financing, allowing Nigerians to spread homeownership payments over 15, 20 or 30 years.

REDAN also advocated rent-to-own arrangements, cooperative housing schemes and housing savings programmes.

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) reported in June 2026 that it had delivered ₦128 billion in mortgages to 1,859 families across 25 states.

The mortgages reportedly carried a fixed interest rate of 9.75 per cent, with repayment periods of up to 20 years and a minimum 10 per cent equity contribution.

By August, the State House said MREIF’s disbursements had increased to ₦140 billion, supporting 2,018 mortgages across 27 states. 

Despite these interventions, experts maintained that affordable mortgages alone would not resolve the crisis if housing production remained expensive.

Land Scarcity and Urban Migration

Chief M.I. Okoro, a Fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), identified population growth, urban migration and limited land supply as key drivers of rising property prices.

He pointed to Lagos areas such as Ikoyi, Victoria Island and Lekki Phase One, where developers increasingly construct vertically because of land scarcity and high acquisition costs.

Okoro said rising property values in prime locations were pushing residents towards less expensive communities on the Mainland and outskirts of Lagos.

He called for increased housing supply, social housing programmes and greater involvement by local governments.

“Social housing is not meant to be for profit motive. That is where government comes in,” he said.

Construction Inflation Worsens Affordability

Ayo Ibaru, Chief Investment Officer at housing development company Panterra, described the crisis as the result of interconnected pressures across the housing sector.

He identified rising costs of cement, steel, finishing materials, labour, diesel and imported equipment as major contributors.

According to Ibaru, exchange-rate volatility has also increased the cost of imported materials and technical expertise.

Developers consequently reassess project budgets and may transfer some additional costs to buyers and tenants through higher sale prices, rents and service charges.

However, he noted that developers’ ability to increase prices remains limited by household incomes and effective market demand.

He argued that housing must be affordable to build, finance and maintain.

Land Documentation and Market Transparency

Ibaru also identified inefficient land administration and limited market transparency as factors increasing housing costs.

He called for faster land registration, clearer disclosure requirements for off-plan developments, stronger developer accreditation and appropriate escrow arrangements.

He also advocated better mechanisms for addressing abandoned or poorly constructed projects.

REDAN urged consumers to verify developers and property titles and conduct due diligence before making substantial payments.

Experts Call for Balanced Housing Development

Okoro argued that improving infrastructure and economic opportunities outside major urban centres could reduce migration pressure on cities such as Lagos.

He identified electricity, water, roads and telecommunications as essential investments for smaller cities and rural communities.

The stakeholders agreed that Nigeria’s housing crisis involves multiple factors, including:

• Expensive land and construction materials.
• High financing costs.
• Inadequate infrastructure.
• Weak household purchasing power.
• Limited housing supply.
• Inefficient land administration.
• Gaps in regulation and consumer protection.

The experts said addressing these interconnected challenges would require coordinated action from government, developers, financial institutions, local authorities and other stakeholders.

The post Nigeria’s Housing Crisis Deepens as Rising Costs Push Homeownership Beyond Reach appeared first on Housing TV Africa.

Nigeria’s housing affordability crisis is deepening as rising rents continue to outpace the incomes of millions of households, leaving many residents struggling to secure decent accommodation.

The growing pressure is being driven by a combination of low household incomes, rising construction costs, inflation and limited access to affordable housing finance.

For many Nigerians, housing now consumes a disproportionate share of household earnings, leaving less money available for food, transportation, education and other essential expenses.

Rising Rents Put Pressure on Households

Rental costs have increased sharply across major Nigerian cities as landlords and developers face higher costs for building materials, labour, energy, transportation and land.

The situation is particularly difficult for low- and middle-income earners who have seen their incomes grow more slowly than housing costs.

Recent reporting on Abuja’s rental market, for example, found that rents in several districts have increased by between 40 and 120 per cent over the past two years. In Lokogoma, a two-bedroom apartment that previously rented for about ₦1.2 million was reported to cost as much as ₦2.5 million annually.

Additional expenses such as agency fees, legal charges, caution deposits and service charges can push the actual cost of securing accommodation even higher.

Housing Costs Outpace Income

The problem is not simply that rents are increasing. It is that household incomes are failing to keep pace.

When a large proportion of monthly income is committed to rent, households have limited capacity to save, invest or respond to unexpected expenses.

The situation can also force residents to move farther away from employment centres in search of cheaper accommodation. But cheaper rent often comes with higher transportation costs and longer commuting times.

This creates a cycle in which households may save on rent while spending more on transportation.

Construction Costs Add to the Problem

Developers and landlords have attributed much of the increase in rents to rising construction costs.

Cement, reinforcement, paints, electrical materials, diesel and transportation have all become more expensive, increasing the amount required to build and maintain residential properties.

In Abuja, for example, cement prices have risen substantially from levels recorded two years ago, adding pressure to development costs.

Recent scrutiny of Nigeria’s cement market by the Federal Competition and Consumer Protection Commission (FCCPC) has also raised questions about why cement prices remain high despite Nigeria’s significant limestone resources and installed production capacity.

The Affordability Problem Goes Beyond Rent

Nigeria’s housing challenge cannot be solved simply by asking landlords to reduce rents.

The underlying problem includes the cost of land, expensive construction materials, inadequate infrastructure, limited housing supply and weak access to long-term mortgage financing.

These factors all feed into the final price paid by households.

Affordable housing therefore requires intervention across the entire housing value chain, from land acquisition and infrastructure to construction finance and mortgages.

More Housing Is Not Enough

Increasing the number of housing units is important, but supply alone does not automatically create affordability.

If newly constructed homes are priced beyond the reach of ordinary workers, they may add to the country’s housing stock without significantly improving access for the people most affected by the crisis.

This is why housing policy needs to distinguish between housing delivery and affordable housing delivery.

Government programmes, private developers and housing-finance institutions will need to pay greater attention to the income levels of the households they are trying to serve.

A Growing Urban Challenge

The affordability crisis is also changing the way Nigerians live and work.

Residents are increasingly moving toward satellite communities where accommodation may initially be cheaper. However, the resulting increase in commuting distances can create additional financial and social pressure.

Recent reporting on Abuja found that residents are increasingly moving toward areas such as Gwagwalada, Kubwa and Mararaba as rents in central and established districts rise.

The trend highlights the need for housing development to be coordinated with transportation, employment centres and infrastructure.

What Needs to Change?

Addressing Nigeria’s housing affordability crisis requires more than isolated housing projects.

Government can improve access to serviced land, reduce unnecessary development costs, strengthen housing finance and support large-scale affordable housing programmes.

At the same time, developers need access to cheaper long-term capital that can reduce the cost of delivering homes.

Housing-finance institutions also have a role to play in expanding mortgages to households that currently cannot afford conventional home loans.

Ultimately, the success of Nigeria’s housing policy should not only be measured by the number of houses constructed.

The more important question is whether ordinary Nigerian households can afford to live in them.

The post Rising Rents Push More Nigerians Beyond Reach of Affordable Housing appeared first on Housing TV Africa.

The skyrocketing cost of living in New York City is forcing creative professionals, including makeup artists, designers, and filmmakers, to leave the cultural hub for more affordable cities like Miami, Dallas, and Nashville.

Noel Jacoboni, a TV and cinema makeup artist with 20 years of experience, says she sees little choice but to move, citing “being priced out” due to steep rents and rising production costs.

A recent report by the Center for an Urban Future reveals that since 2019, the number of workers in creative industries across New York has dropped by 6.1 percent. Sectors including cinema, TV, advertising, and design have experienced notable declines, with cinema and TV employment down 19.1 percent, advertising down 15.7 percent, and design down 14.3 percent.

Income vs. Rent Gap

The report highlights a widening gap between income and living costs. Creatives in New York earn approximately 23% less than the national average after accounting for the high cost of living, compared to 15% a decade ago. Median household rent has surged by 42% over the last ten years, while creative salaries increased by only 25%, significantly below the citywide average salary increase of 44%.

Eli Dvorkin, an author of the report, notes, “Artists were hit hardest during the COVID-19 pandemic, and now costs are rising faster than incomes, pushing many to seek opportunities elsewhere.”

Impact on New York’s Cultural Scene

The exodus of talent has taken a toll on New York’s cultural institutions. More than 50 theaters, music venues, museums, and galleries have closed since 2020, citing high rents, insurance costs, and operational expenses. Even major cultural landmarks like the Metropolitan Opera and the Guggenheim Museum have implemented layoffs. Broadway productions also face challenges, with only four musicals turning a profit over the past six years.

City Efforts to Retain Creative Talent

Mayor Zohran Mamdani and his administration have acknowledged the affordability crisis. Rafael Espinal, the city’s head of media and entertainment, emphasized the importance of keeping New York “the creative capital of the world,” ensuring that artists can live and work sustainably in the city. Initiatives include expanding rent-controlled housing for artists and increasing access to well-paying union jobs.

Julie Menin, Speaker of the New York City Council, and the Center for an Urban Future have also proposed citywide cultural festivals and targeted housing policies to rejuvenate the creative sector and retain talent.

As New York City continues to face steep living costs, the future of its creative workforce and its status as a global cultural hub, depends on balancing opportunity, affordability, and sustainable urban development.

The post US: High Cost of Rent Pushes Workers Out of City appeared first on Housing TV Africa.