Only 31% of Lagos residents own homes as rents surge—Report
Lagos has a homeownership rate of 31%, with 51% of residents living in rented accommodation, according to a report by Fortren & Company. The post Only 31% of Lagos residents own homes as rents surge—Report appeared first on Nairametrics .
A recent report by Fortren & Company reveals that only 31% of residents in Lagos, Nigeria own homes, with the remaining 51% residing in rented accommodations. The city's heavy dependence on rentals is attributed to factors such as population size, economic significance, and high concentration of businesses and professionals.
The assessment encompassed 10 major African cities, chosen based on economic importance, presence of expatriates and mobile professionals, and the maturity of their rental markets. Lagos emerged as the fourth city among the selected ten for high-end two-bedroom rentals, with an average annual cost of $19,379 in 2026.
Nigerian homeownership is defined broadly, encompassing any personal house, whether built, gifted, purchased or inherited, rather than solely properties obtained through mortgages. In Nigeria, tenants often pay annual or multiple years' rent upfront, which can significantly increase the total cost of securing a rental property.
The housing market in Lagos faces mounting pressure due to escalating development costs. Land prices have surged in various parts of the city, with some areas experiencing a more than doubling of rates over the past few years. This has prompted developers to shrink unit sizes, relocate to cheaper regions, utilize alternative materials, and implement phased development projects. However, experts assert that a significant portion of these increased expenses is ultimately transferred to buyers and tenants.
As of 2025, Lagos is grappling with a housing deficit of approximately 3.4 million units, necessitating the construction of around 227,576 new homes annually to keep up with population growth and replace aging housing stock. A report presented at the GTI Investment Group housing forum indicated that some Lagos residents allocate between 60% and 70% of their income towards rent, highlighting the challenges posed by limited housing supply and escalating development costs on both rents and affordability.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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