A new housing report has revealed that many families in Lagos now spend up to 70 per cent of their monthly income on rent, leaving little for other basic needs like food, education, and transport.
The report, published in the third edition of the State of Lagos Housing Market by the Roland Igbinoba Real Foundation for Housing and Urban Development, blamed rising rent, stagnant wages, and lack of affordable housing for the worsening crisis.
“Wages remain stagnant while rents consume 50–70 per cent of income, increasing sharply, reducing affordability, and making home ownership unattainable,” the report said.
It added that land speculators were making matters worse by buying up plots and reselling at higher prices, pushing out those who genuinely need housing.
Even areas far from central Lagos are now too expensive for many, with land prices going up due to expected development.
According to the findings, many residents complained that rent increases were often random and unregulated, which added to their hardship.
“There is a growth in informal settlements due to a lack of formal affordable options. Affordable housing is far from jobs, leading to high commuting costs and long hours,” the report noted.
It also pointed out that low-cost homes, when available, often lack basic services like water, electricity, and good roads, making them hard to live in.
The report also said most Nigerians cannot access mortgages, and the cost of legalising land ownership is too high. “Down payment requirements are exclusionary. Developers focus on luxury housing due to better returns and a lack of incentives to build affordably.”
One of the most shocking findings was that the housing problem is not caused by just one thing. Instead, it is a mix of weak regulation, market failures, economic problems, and inequality.
Even middle-class families are now struggling to keep up with housing costs, as small builders who usually serve them are also finding it hard to finish or start projects due to high prices of building materials.
The foundation called for strong action to fix the market, including providing developers with incentives to build affordable homes. It also warned that if nothing changes, housing would continue to be out of reach for many residents.
The first and second volumes of the housing market report were published in 2009 and 2016.
