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By: Ajayi Taiwo Adeola
Millions of people cannot afford their housing costs. This means they do not have enough money left over to pay for other essential expenses, such as food, transportation, and health care. They may also be at risk of eviction or foreclosure.
There are Six main reasons why people cannot afford housing:
LOW INCOME
Many workers do not earn enough money to afford housing. In some areas, only workers earning $30 or more per hour can comfortably afford housing. The federal minimum wage of $7.25 per hour is not enough to afford a typical two-bedroom apartment.
LACK OF AFFORDABLE HOUSING
For-profit developers generally do not build housing for lower-income households because the rents and home prices that these households can afford are too low to cover the costs of construction and operation.
GOVERNMENT REGULATIONS
Certain types of government regulations, such as limits on density and lengthy approval processes, can raise the cost of housing and reduce the supply.
LACK OF GOVERNMENT FUNDING
Federal, state, and local governments are not providing funding for affordable housing programs, but these programs are not keeping pace with the need.
EXCHANGE RATE
The poor exchange rate of the naira has led to a significant increase in the prices of building materials in Nigeria, especially iron rods and cement, as most of these materials are imported.
THE HIGH COST OF INFRASTRUCTURE
In recent times, the government has not been able to provide adequate infrastructure, such as roads, water, and electricity, to support mass housing in Lagos and Abuja.
This is due to several factors, including the economic downturn and a lack of commitment from those in charge of infrastructure development.
As a result, developers of mass housing estates are often responsible for providing these essential services themselves. This adds to the cost of the housing, making it unaffordable for many people, including civil servants and other low-income earners
To address the problem of housing affordability, we need to address all six of these factors. We need to raise incomes for low- and moderate-income workers, increase the supply of affordable housing, reduce government regulations that raise the cost of housing, and increase government funding for affordable housing programs.
and lately to cost of insuring a stick built home