Lagos Homeownership at 31% Amid Rising Rent Costs

A report by Fortren & Company reveals that only 31% of Lagos residents own their homes, while 51% live in rented accommodation. This statistic underscores the city's heavy reliance on rental housing, driven by its large population and economic significance.

The report assessed 10 major African cities and found that Lagos ranked fourth in high-end two-bedroom rental costs, with an average annual rent of $19,379 projected for 2026. The report indicates that tenants in Nigeria often pay annual or multiple years' rent in advance, which can inflate the actual cost of securing rental properties.

Rising development costs, including land prices that have more than doubled in some areas, are exacerbating the housing crisis. Developers are responding by reducing unit sizes and exploring cheaper land, but these costs are typically passed on to buyers and tenants.

Lagos has a housing deficit of approximately 3.4 million units, necessitating an estimated 227,576 new homes each year to accommodate population growth and replace aging housing.