Rising Rents Crush Hope for Affordable Housing in Nigeria

Home seekers are struggling as landlords increase rents due to rising construction costs, exacerbated by Nigeria’s challenging economic conditions. In the past year, tenants, especially in city suburbs, have faced rent hikes of over 40 percent.

 

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Factors like high inflation, currency devaluation, and the removal of petrol subsidies have driven up the prices of goods, including building materials. This surge in construction expenses has made it tough for developers to offer affordable housing, affecting over 75 percent of Nigerians in need of adequate accommodation.

Real estate consultant Cyril Adetiba notes that tenants are bearing the brunt, with rents skyrocketing monthly due to the limited availability of new housing. Low-income areas have seen significant rent increases, with one-room apartments jumping from N150,000 to N250,000 within a year.

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A tenant, Godday Nwokedi, shared his experience of a sudden rent increase from N650,000 to N1 million for a three-bedroom apartment, citing inflated maintenance costs explained by his landlord as a consequence of rising construction expenses.

The surge in building material prices, including cement and reinforcement rods, has driven up construction costs. Cement prices have risen from N5,300 to N7,000 per 50kg bag, while reinforcement rods have doubled or tripled in price.

Additionally, the cost of paint has surged, with a 20-litre container now ranging from N10,900 to N35,000. Labor costs have also surged, with artisans now charging between N6,000 and N8,000 per day, partly due to increased transport expenses.

The inflationary trend has indirectly impacted the fees of built environment professionals, reflecting the broader economic challenges facing the country. As a result, tenants face mounting pressure as landlords pass on rising construction expenses through increased rents, exacerbating the housing crisis in Nigeria.

Amidst the challenges of rising rents and construction costs, individuals and families seek viable solutions to secure affordable housing. In times like these, having access to platforms like Krent can provide options, enabling renters to explore choices that align with their budgets and preferences.

With Krent’s user-friendly interface and diverse listings, individuals can navigate the rental landscape more efficiently, finding residences that offer value and stability amidst the turmoil of Nigeria’s housing market.

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