Nigerian proptech platform, Citiliving, has said that the housing crisis in Nigeria is down to a rental property supply problem.
The platform recently revealed that while many believe it is mainly a homeownership issue, it actually isn’t.
Speaking via a press statement, the Founder of Citiliving, Era Iyayi, revealed that people just have to search for a residential property to rent in Lagos or Abuja right now, and they’ll know that the struggle is real out there.
According to him, rents keep going up and decent homes are becoming more rare, and when you are lucky enough to finally find one, you are immediately slapped with ridiculous agency fees, outrageous legal payments and annoying inspection charges.
“Rents are skyrocketing, decent homes are hard to find, and when you finally find one, you are slapped with outrageous agency fees, legal fees, inspection fees, and even caution fees that no one seems to account for. Meanwhile, thousands of newly built houses sit empty because they are priced far beyond what the average Nigerian can afford.
This mismatch between supply and demand is at the heart of Nigeria’s housing crisis. The real issue isn’t just homeownership—it is the rental supply problem. Don’t get it twisted, homeownership is a problem, but it is not the core issue,” he said.
Era revealed that while homeownership also comes with its disadvantages due to high construction costs, restricted mortgage financing, and costly land, it is still not a full-blown crisis yet, since most Nigerians would rather go for affordable rental housing that suits their income level and lifestyle.
He said that since most Nigerians can’t afford to buy a house outright, all working young adults seek is quality, well-managed, and affordable rental housing in city-centre locations, where they can live, work, and feel accommodated.
Era stated that while investors see the opportunity to build more rental properties, the barriers that come with investing in rental housing are highly discouraging, hence their decision to avoid the stress of handling repairs, rent collection, and tenant issues.
“Policymakers and developers keep pushing for more high-end houses, assuming that people just need to “own their homes.” But let’s be honest— for a mostly youthful population who love the city lifestyle, three-bedroom bungalows in the outskirts of town may be a part of the solution but not the first solution. Most Nigerians can’t afford to buy a house outright. What most working young adults need is quality, well-managed, and affordable rental housing in city-center locations where they can live, work, and thrive.
Yet, we see thousands of new ‘luxury’ homes sitting empty because they are too expensive and supply in that segment outpaces demand for single family homes; a massive demand for rental apartments, even in poorly maintained buildings; and rents increasing every year due to limited supply, making it harder for the average Nigerian to secure a decent place to live.
The question then becomes why aren’t investors building more rental properties?
It’s not like investors don’t see the opportunity—many do.
But the barriers to investing in rental housing discourage them. These include unpredictable tenants and payment defaults because many property owners and managers have horror stories of tenants who refuse to pay rent on time, if at all; poor property management – Investors don’t want the stress of handling repairs, rent collection, and tenant complaints,” he added.
