Few months ago, a friend of mine told me something, more about his experience with increased house rent in Nigeria.
The whole conversation had me thinking “what is really going on with the high rent prices?”.
He had been saving for months to move into a new apartment. He finally found a decent 2-bedroom flat in Abuja. Clean water, steady power, and a good location. But then the landlord told him the price: ₦2,500,000 per year. He was shocked. His salary had not increased. But the rent had almost doubled.
Sadly, this story is now familiar across the country.
Residents in various Nigerian cities are experiencing soaring rent prices, from Lagos to Abuja and even areas that once seemed affordable. Nigerians are encountering significant house rent hikes from landlords, and the same question keeps coming up:
Why are rent prices going up?
This article breaks down what’s happening, the real reasons behind soaring rent prices in Nigeria cities, and practical solutions that can help both renters and developers.
1. Understanding Nigeria’s Rent Crisis
Rent in Nigeria is rising faster than most people’s salaries. For example:
The average price of a 2-bedroom apartment is now around ₦2,000,000, depending on the location and finishing.
A decent 1-bedroom unit in major cities goes for ₦800,000 – ₦1,500,000.
A self-contained apartment costs ₦500,000 – ₦1,000,000 in many popular areas.
Meanwhile, the average middle-class salary remains ₦300,000 – ₦500,000.
The math is simple:
Rent is climbing. Income is not.
This widening gap is pushing many Nigerians into financial stress. Demand for affordable homes: self-contained, 1-bedroom, 2-bedroom, and 3-bedroom units is growing, but supply is not keeping up. And when demand is higher than supply, prices rise. That’s exactly what is happening today.
2. More Property Development, Yet Increased House Rent: What’s Really Happening?
Walk through any major city and you’ll notice something surprising:
New buildings are rising everywhere, yet rent keeps increasing. Why?
Because many of the new buildings are luxury developments, not the affordable homes most Nigerians actually need. Developers are focusing on:
- Luxury duplexes
- High-end terrace houses
- Shortlet apartments
Meanwhile, the real demand is for:
- Self-contained units
- One-bedroom apartments
- Affordable two-bedroom homes
- Budget-friendly three-bedroom units
This mismatch between what is being built and housing demand is worsening the rent crisis, despite the boom in construction.
3. Factors Driving Up the Rent Prices
Here are the major factors driving soaring rent prices in Nigeria cities:
A. Housing Shortage
There are simply not enough affordable houses to meet demand. When supply is low and demand is high, rents naturally increase.
B. Rising Cost of Building Materials
Cement, iron rods, tiles, plumbing items, and other materials have become extremely expensive. Developers often transfer these costs to tenants.
C. High Cost of Land
Land prices in Lagos, Abuja, and Port Harcourt have skyrocketed. If land is expensive, rent will also be expensive.
D. Inflation
With inflation affecting food, transport, fuel, and construction materials, landlords raise rent to keep up with the economy.
E. Exchange Rate Pressure
Many building materials are imported. The dollar exchange rate directly affects housing prices.
F. Urban Migration
More people are moving into major cities for work. As more people aspire for a better future, the population in major cities keep increasing, hence demand for affordable homes.
All these factors combined are responsible for some of the rent increase.
4. Rapid Urban Growth Is Widening the Gap
Nigeria’s major cities are growing faster than the housing supply. Urban areas are expanding, but affordable homes are not. This imbalance continues to push rent higher and put pressure on families.
5. A Crisis We Can Solve
Even though rent keeps rising and many Nigerians are struggling to afford decent housing, the truth is this crisis is not beyond us. We can solve it.
In the last few years, we’ve seen the Federal Government step up with new initiatives aimed at reducing the housing pressure.
One major example is the Renewed Hope Estate developments. Across different states, these projects are rolling out 2-bedroom and 3-bedroom apartments designed to give more Nigerians access to affordable and decent homes.
6. Conclusion
With steady government action and bold private developers, affordable housing is possible. If we stay consistent, Nigeria can ease soaring rents and make decent homes accessible for more families.
