Nigerians Shift to Rentals Amid Housing Market Challenges

The Chairman of Exclusive Estates reports a significant shift among Nigerians from home ownership to rental accommodations. Major barriers to home ownership include high construction costs, expensive land acquisition processes, limited access to long-term financing, inadequate infrastructure, regulatory bottlenecks, and low purchasing power among citizens.

The demand for housing remains enormous, but the number of people able to afford newly built homes is relatively low. Inflation has significantly increased the costs of materials such as cement and steel, while high interest rates have made mortgage financing inaccessible.

Consequently, many buyers prefer installment payment plans directly with developers, limiting formal housing demand and slowing market growth. The government is urged to implement policies that simplify land registration, reduce transaction costs, and expand access to affordable mortgage financing.

Comprehensive reforms in the mortgage sector are essential to increase homeownership levels, stimulate demand across various sectors, and create jobs while improving urban development.