Rising Housing Costs: How does this affect you?

Rising Housing Costs: How does this affect you?

WHY ARE RENT COSTS RISING?

We can attribute the rising rental cost to the following:

  • High Inflation rate.
  • The High cost of building materials translates into higher rents.
  • Absence of adequate alternatives.
  • The uptick in demand for 2-bedroom apartments, mini flats, and studio apartments.
  • Shift in focus by landlords/owners to short-let apartments.
  • Overcrowding in the rental market.

Steady rising housing costs can be a substantial expense and the amount spent on rent can significantly impact your finances. The high inflation rate coupled with rising demand has led to a spike in the rents of accommodation by over 30% in the last 12-24 months.

The rent for a mini-flat in areas like Magodo Isheri, Ogudu GRA, Gbagada in 2020 was an average of N500K monthly. Today same mini-flat costs upwards of N900K -1.5Million. (Also represent figures in Graphical form)Conversely, rent for a two-bedroom apartment in the same areas in 2020 was between N1M-1.2M. As of today, the same apartment goes for N1.5M-N2.5M.

How does this impact you?

  • Reduction in disposable income.
  • Many people are moving back to their parent’s or family homes.
  • Lower savings The higher burden for tenants.
  • Higher cost of food items results in a further reduction in disposable income

How to mitigate and reduce your cost of rent?

  • Select an affordable location
  • Embrace shared living
  • Be Flexible

How much was your rent in 2020 and How much are you paying now? Tell us in the comment section

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