Real Estate Crisis: Rising Rent Cripples Housing
Real Estate Crisis Rising Rent Cripples Housing. Nigeria’s urban population is facing a real estate crisis of historic proportions. Over the past two years, rent prices in major cities have doubled, making housing unaffordable for millions. With a 28-million-unit housing deficit, the imbalance between supply and demand grows more dangerous by the day.
This crisis, driven by inflation, tax hikes, and sluggish construction, is leaving working-class families scrambling for solutions.
What’s Fueling Nigeria’s Real Estate Rising Rent Crisis?
The surge in construction costs has made it harder for developers to build affordable homes. Real estate investors now spend significantly more to construct livable spaces— for those with church mind. Naturally, they pass these costs onto tenants, triggering massive rent hikes.
In Lagos, homes that once rented for ₦500,000–₦700,000 now go for ₦1.2 million–₦1.5 million while in Abuja, a standard three-bedroom apartment ranges from ₦6 million to ₦15 million.
In Port Harcourt, mini-flats average between ₦500,000 and ₦600,000.
Even in Enugu, once considered more affordable, a two-bedroom apartment in New Haven now costs between ₦1.7 million and ₦2.2 million.
These rent increases have pushed tenants toward city outskirts in search of relief. But, for someone earning the national minimum wage of ₦70,000, over 70% of income now goes into rent—leaving little for essentials like food, healthcare, and education.
No Rent Control, No Relief- Real estate Crisis
Though lawmakers have proposed rent control measures over the years, none have seen the light of day. In the meantime, landlords continue to hike rent arbitrarily—often without improven
Many cite the new minimum wage as justification. Meanwhile, the shortage of studio and one-bedroom apartments has allowed landlords to charge a premium, especially as demand grows among hybrid workers and young professionals.
What the Real Estate Experts Are Saying
“This is housing poverty,”
— Dr. Sunday Olajide, former chairman, Nigerian Institution of Estate Surveyors and Valuers (NIESV)
According to Dr. Olajide, middle-income earners and civil servants are increasingly moving into makeshift or substandard housing located far from their places of work. This adds even more stress through long commutes and high transportation costs.
Niyi Fayoju, former chairman of NIESV’s Real Estate Consulting Division, also blames high demand, inflation, and lack of government support for Nigeria’s housing crisis.
The Way Forward: A Call for Action
If Nigeria doesn’t act swiftly, urban housing will remain out of reach for the average citizen. The rent burden will worsen, and the real estate crisis will deepen.
Solutions include:
- Subsidized housing programs
- Public-private partnerships
- Faster permit and construction processes
- Rent regulation policies
- Improved macroeconomic stability
It’s time to treat housing as a basic human need, not a luxury commodity.
Conclusion
Nigeria’s real estate crisis is not just about buildings—it’s about people. With each passing month, more families struggle to afford decent shelter. The need for urgent reform has never been clearer.
Affordable housing isn’t just a dream. With the right policies and partnerships, it’s possible.
Check out my previous publication, Here