‘Lagos housing crisis worsens as rent consumes 60% of residents’ income’
More than 70 percent of Lagos residents remain tenants, with a significant portion of their income, between 40 to 60 percent, going towards rent, according to the latest State of Lagos Housing Market Report, which sheds light on the deepening housing crisis in Africa’s largest city.
The report reveals that rental pressure is most severe in affluent neighbourhoods such as Lekki, Ikoyi, and Victoria Island, where property values and luxury apartment costs continue to rise despite broader economic headwinds.
Commissioned by the Roland Igbinoba Real Foundation for Housing and Urban Development, RIRFHUD, the third edition of the biennial report paints a complex picture of Lagos’ real estate market.
While upscale developments and short-let accommodations are thriving, primarily driven by diaspora funding and developers targeting high-net-worth people, the low-income housing sector remains severely underfunded and neglected.
Unveiled during an event in Victoria Island, the report is the most comprehensive of its kind to date, drawing on satellite imagery, property analytics, and field data. It builds upon the foundation laid by earlier editions released in 2009 and 2016, and is expected to influence future investment and urban housing policy in Lagos.
Among its findings, the report highlights a sharp rise in the state’s housing deficit, from an estimated 2.95 million units in 2016 to 3.4 million in 2025, representing a 15 percent increase.
This surge emphasises a growing disconnect between private-sector-driven supply and the actual demand for affordable housing across the state.
High-demand locations such as Ikorodu, Badagry, and Alimosho were noted for their acute housing needs, yet continue to experience minimal new residential development.
Despite ongoing economic uncertainties and increased construction costs, property prices rose by 12 percent year-on-year.
Meanwhile, yields on short-let and serviced apartments surged by 15 to 18 percent in premium neighbourhoods, even as affordability concerns caused rising vacancy rates on the mainland.
Persistent infrastructure deficits, particularly in drainage, electricity, and road networks, continue to limit the liveability and investment appeal of many residential zones.
“The market is saturated with luxury apartments, but the middle class is being priced out,” one respondent was quoted as saying in the report.
Administrative and regulatory challenges also featured prominently in the findings. Developers cited inefficient land titling processes, high documentation costs, and delays in securing permits, factors that can add 15 to 20 percent to housing development expenses.
“These bureaucratic hurdles are stalling private investment and slowing the pace of new housing delivery,” the report noted, calling for streamlined processes and renewed public-private collaboration to bridge the widening housing gap.
