HOUSING MARKET INSIGHTS

The housing sector in nigeria plays a critical role in the economy and the overall well-being of its citizens. Access to affordable and adequate housing remains a significant challenge, with a large portion of the population without adequate housing and limited options for homeownership. The housing market in Nigeria is marred by diverse factors such as rapid urbanization, population growth, and socio-economic dynamics. Despite efforts to address housing deficits, the gap between demand and supply remains substantial, leading to affordability challenges for many Nigerians caused by a combination of low income levels, high double-digit interest rates, poor credit awareness/culture, inadequate affordable housing supply, and high inflation.To address some of these challenges, various stakeholders, including government agencies, developers, financial institutions, and international organizations, are involved in initiatives to promote access to affordable housing and homeownership.

The current administration has designated housing as a major priority in its “Renewed Hope” agenda and has made critical reforms to realise the presidential deliverables for the sector. Major changes include the creation of the Ministry of Land, Housing and Urban Development (demerged from the previous Ministry of Works and Housing) and the inauguration of four Reform Task Teams focused on tackling key areas within the sector: Housing Institutions reform, multi-agency project delivery, land reform, and buildings material manufacturing.

This publication leverages primary data from the NMRC Research team and secondary data from various sources including the Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the World Bank, and other credible industry sources. It aims to provide valuable insights into the challenges faced with mortgage affordability in Nigeria.