Odimmegwa Johnpeter/Abuja
Across Africa, the dream of decent and affordable housing is slipping further away for millions of low-income earners. Despite years of conferences, policies, and promises, housing delivery continues to lag behind demand, while costs keep rising. Today, the challenge is no longer just about housing shortages; it is about a systemic failure driven by high construction costs, limited access to affordable land, and prohibitive interest rates. This was contained in a statement issued by Housing Development Advocacy Network (HDAN). The statement reads:
“As African governments prepare their economic and social priorities for 2026, the housing crisis demands urgent, practical, and people-centred intervention.
“The Rising Cost of Building: When Materials Become the First Barrier
“One of the most visible obstacles to affordable housing delivery in Africa is the spiralling cost of building materials. Cement, steel, roofing sheets, tiles, fittings, energy, and transportation costs have risen sharply across the continent, driven by inflation, currency depreciation, high fuel prices, and heavy dependence on imports.
“For developers focused on low-income housing, these increases are devastating. Affordable housing works on thin margins. When material costs rise suddenly, projects are delayed, scaled down, or abandoned entirely. In many cases, developers are forced to pass the costs on to buyers, instantly pushing homes beyond the reach of low-income earners.
“For ordinary citizens, this reality means one thing: formal housing becomes unaffordable, and informal settlements become the default option.
“Land: Available in Theory, Unaffordable in Practice
“Land is often described as abundant in Africa, yet affordable housing developers struggle to access it. The problem is not land alone, but serviced and legally secure land.
“In many cities, land comes with multiple challenges:
“Unclear or disputed ownership,
“slow and expensive title registration processes,
“lack of basic infrastructure such as roads, water, and electricity,
“speculative land hoarding that drives up prices.
“By the time land is properly titled and serviced, its cost has multiplied several times over. These costs inevitably end up embedded in house prices or rents, making “affordable” housing unattainable for the very people it is meant to serve.
“High Interest Rates: The Silent Housing Killer
“Housing finance remains one of the weakest links in Africa’s housing ecosystem. Mortgage interest rates in many countries are simply too high for low-income earners, and repayment tenors are often too short.
“For most workers in the informal or low-income formal sector, accessing a mortgage is either impossible or financially reckless. Developers are also affected, as high borrowing costs increase project financing expenses, which again translate into higher house prices.
“Without affordable, long-term, local-currency housing finance, homeownership remains a privilege rather than a right.
“What Governments Must Do in 2026
“If Africa is serious about closing its housing gap, governments must move beyond rhetoric in 2026 and implement deliberate, coordinated interventions.
“1. Reduce the Cost of Building Materials
“Governments must support local production of building materials and encourage alternative, cost-effective construction technologies that meet safety standards. Targeted tax waivers or duty reductions on inputs used strictly for affordable housing projects can also provide immediate relief. Bulk procurement schemes for verified developers and cooperatives can further lower costs.
“2. Deliver Serviced, Affordable Land
“Public land banking, proper planning, and the provision of trunk infrastructure are essential. Governments should make serviced plots available specifically for affordable housing, with clear affordability conditions attached. Digitising land registries and simplifying approval processes will reduce delays, corruption, and hidden costs that inflate housing prices.
“3. Fix Housing Finance
Affordable housing can not be delivered with expensive money. Governments must support interest-rate buy-downs, credit guarantees, and housing finance liquidity mechanisms that reduce risk for lenders and cost for borrowers. Rent-to-own schemes, cooperative housing finance, and incremental building loans should be expanded, especially for low-income and informal-sector workers.
“4. Treat Rental Housing as a Core Solution
Homeownership is not the only answer. Affordable rental housing must be prioritised through incentives for developers, public-private partnerships, and clear tenant protection frameworks. A strong rental market provides dignity, stability, and flexibility for millions of households.
“5. Cut Bureaucracy and Enforce Accountability
“Time delays add costs. Governments must streamline approvals, modernise building codes, and publish clear affordability benchmarks. Subsidies and incentives must be transparently monitored to ensure they benefit low-income citizens—not speculative or luxury developments.
“A Defining Choice for 2026
“Africa’s housing crisis is not inevitable. It is the result of policy choices—and it can be reversed by better ones. In 2026, governments must decide whether housing will remain a market failure that pushes citizens into slums or a social and economic priority that drives jobs, stability, and dignity.
“Affordable housing will only succeed when land is made available, materials are made affordable, and finance is made accessible. Anything less is not reform—it is delay, ” it also added.
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