A recent report by BuyLetLive has revealed that approximately 98.5% of Lagos residents live in rented apartments.
The study highlights that the persistent rise in inflation and fluctuating exchange rates are major factors driving this trend, as more residents opt for renting over owning homes.
Economic Pressures Drive Demand for Rentals
The report noted, “Our analysis indicates that 98.5% of respondents in Lagos live in rented apartments.” It added that economic pressures, including high inflation and a volatile exchange rate, have led to a surge in property prices in Lagos, increasing the demand for rental properties.
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“This demand is particularly strong in affordable areas that offer amenities and proximity to workplaces. The top three residential areas in high demand in Lagos are Yaba, Surulere, and Gbagada. Despite the increasing demand, the supply of housing in these areas remains insufficient to meet the growing needs.”
The housing deficit in Lagos State currently exceeds three million units, highlighting a significant gap between the demand for and supply of residential properties.
Homeownership Remains Elusive for Many
Babatunji Adegoke, Technical Secretary of the Nigerian Society of Engineers, Victoria Island Branch, commented on the cost of homeownership. “The cost of owning a home exceeds the average worker’s income. High mortgage interest rates are not appealing, and social housing options are rarely available and often unaffordable for the average income earner,” he stated.
He further explained that ongoing inflation has led many to prioritize meeting basic needs over homeownership.
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Residents Share Their Experiences
Justice Nwuchegbuo, a resident of Yaba, Lagos State, emphasized the challenges faced by many in transitioning from tenants to homeowners. “The high cost of land acquisition and construction, coupled with the rising cost of building materials, makes it challenging for people to build their own houses. As a result, the demand for rental apartments far exceeds the available supply, leading to a significant increase in rental costs,” he said.
Oluwatosin Babalola, a resident of Surulere, pointed out the attractiveness of Lagos as a major hub of commerce and finance, which draws many people seeking better opportunities. “The high cost of real estate in the state makes owning a property a daunting task for most residents. Renting is more affordable and frees tenants from additional expenses such as land use charges and other government fees,” she noted.
Challenges in the Rental Market
HousingTV reported that rents in Lagos have surged by 91.32% over the past five years, posing a significant challenge to residents seeking affordable housing. The shortage of available housing drives up prices, with even small apartments commanding high prices, ranging from 500,000 to over a million naira, depending on the location.