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The rental market in Lagos has been described as unstable, unpredictable, and filled with hidden rules that many tenants do not understand. This was revealed in the third edition of the State of Lagos Housing Market report, published by the Roland Igbinoba Real Foundation for Housing and Urban Development. According to the report, the Lagos housing market remains one of the most active in Nigeria, with strong demand across all income levels, especially among low- and middle-income earners. But the demand is not matched by enough supply, making decent housing harder to find for most residents.
The report pointed out that while many new housing projects are springing up in Lagos, they are mainly focused on the high-end and luxury market. These developments are not helping the people who need housing the most — those with small and average incomes. This has created a serious supply-demand problem, where there are too many people looking for houses, but not enough affordable homes to go around.
According to the report, this imbalance is pushing housing prices up and forcing many families to leave the formal housing market. For them, both buying and renting decent accommodation near job locations or city centres are becoming more difficult. With rent prices rising and wages not keeping up, the dream of having a roof over one’s head is slipping away for many.
To tackle the growing housing crisis, some private and government organisations are introducing flexible payment models and rent-to-own schemes. These options are beginning to catch on, but they are not yet enough to solve the widespread problems.
The report also raised concerns about the growth of informal housing areas in Lagos. As people struggle to find formal housing, many are turning to unplanned settlements and slums. These areas often lack basic infrastructure like clean water, roads, and proper waste disposal, which puts more pressure on Lagos’s already struggling urban systems. The lack of planning in these areas also creates safety and health risks for the people living there.
Several issues are making it difficult for the housing sector to grow properly. These include unclear land titles, lack of infrastructure, frequent cases where property developers fail to finish projects, and too many government bottlenecks. All these problems discourage both investors and buyers from participating in the market.
Despite these challenges, the report noted that some positive changes are happening. There is a growing interest in mid-income housing estates in newer parts of Lagos like Ibeju-Lekki. Also, investors are putting more money into short-let and luxury properties in popular areas, hoping to make quick profits. But this trend is causing further price increases in areas already facing high demand, making it even tougher for regular people to find a home.
The current state of the Lagos real estate market shows that the city’s housing problems are complex. There are too many people chasing too few houses, and most of the houses being built are not for the people who need them most. Even though new ideas and models are being introduced, big changes are still needed. These include better housing finance systems, improved urban planning, and strong regulation to make the system fairer and more balanced.
The third edition of the State of Lagos Housing Market report follows earlier editions published in 2009 and 2016. This latest edition gives a clear picture of how serious the housing challenges in Lagos have become and why urgent solutions are needed.
