By Makafui Abena Kuffo
Ghana is facing a serious shortage of affordable housing, leaving many workers unable to buy or rent homes within their income levels. A report by the Housing Data Center reveals that salaried workers earning less than GHC 4,000 per month may need to seek higher-paying jobs or additional income streams to afford a home in Ghana.
The Minister of Water Resources, Works and Housing, Alhaji Collins Dauda, has highlighted that Ghana has a housing deficit of 1.7 million units. To close this gap over the next decade, at least 170,000 housing units need to be built annually. While the government is partnering with private and international firms to address the crisis, many Ghanaians argue that current real estate and mortgage offerings remain unaffordable for the average worker.
Many callers on the Citi Breakfast Show shared the challenges they face in the housing market. One caller explained the difficulty in even renting a modest “self-contained” apartment for GHC 450. In contrast, others raised concerns that real estate developers were increasing prices unexpectedly, despite payments being made in foreign currency.
Another key challenge highlighted by Kelvin Kwaku Yeboah, leader of the research team behind the Housing Data Center report, is the mismatch between salaries and property prices. For instance, a basic one-bedroom facility costing GHC 120,000 requires a monthly payment of approximately GHC 1,820, which translates to a qualifying income of at least GHC 12,000 per month. With many public sector workers earning less than GHC 1,000 per month, the affordability gap becomes stark, making it impossible for many Ghanaians to access decent housing under current market conditions.
The rising cost of materials, foreign exchange fluctuations, and limited affordable housing initiatives further complicate the crisis, leaving many Ghanaians without suitable housing options while developers focus on higher-end properties that yield greater profits.
If Ghana aims to tackle its affordable housing crisis, there is a need for policies that address financing, enforce affordable housing quotas for developers, and encourage the use of cost-effective local building materials to reduce overall construction costs. This will help ensure that workers can access safe and affordable housing, thereby securing their future.
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Frequently Asked Questions About Affordable Housing in Ghana
Question: Why is affordable housing such a big challenge in Ghana?
High construction costs, limited government-backed financing options, and a focus on premium housing by developers contribute to the lack of affordable housing in Ghana.
How many housing units does Ghana need annually to meet demand?
Ghana needs to build at least 170,000 housing units annually to close its 1.7 million-unit housing deficit.
Can workers earning below GHC 4,000 afford a home in Ghana?
It is very challenging, as even a one-bedroom facility requires an income of around GHC 12,000 per month for mortgage qualification under current conditions.
What can be done to improve affordable housing in Ghana?
Encouraging the use of local materials, providing government-backed affordable housing financing, and enforcing developer quotas for affordable units are key steps toward solving the crisis.
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