Ghana’s housing deficit remains a pressing issue, with millions of citizens struggling to access decent and affordable accommodation. Despite various government interventions and private sector efforts, the challenge persists due to a combination of economic, regulatory, and structural factors.
One of the key barriers to affordable housing is the high cost of land, particularly in urban areas like Accra, Kumasi, and Takoradi. Land prices have surged due to rapid urbanization, increased demand, and speculative purchasing. The absence of a well-regulated land tenure system also leads to disputes and multiple claims over ownership, further complicating acquisition processes for housing developers.
Rising construction costs present another challenge. The majority of building materials used in Ghana are either imported or subject to global price fluctuations. The high cost of cement, iron rods, roofing sheets, and other essential materials makes construction expensive, limiting the affordability of completed housing units. Even locally sourced materials remain costly due to production constraints and high energy tariffs.
The lack of affordable mortgage financing further compounds the problem. Ghana’s mortgage rates are among the highest in the region, with many banks offering interest rates exceeding 25%, making home loans inaccessible for low- and middle-income earners. Additionally, most financial institutions require formal employment records, which exclude a large portion of the population working in the informal sector.
Another factor is infrastructure deficits in low-cost housing areas. Many communities lack proper roads, drainage systems, potable water, and electricity, making it expensive for developers to invest in these locations. As a result, they focus on high-end housing, which guarantees higher returns, further marginalizing the lower-income segment of the population.
Regulatory bottlenecks and inefficient urban planning also slow down the delivery of affordable housing. Developers often face delays in acquiring building permits due to bureaucratic red tape, corruption, and inconsistent zoning laws. These inefficiencies increase construction costs and discourage investment in affordable housing projects.
Low-income levels and high unemployment rates remain fundamental issues. A significant portion of the population earns below the threshold required to secure housing, making even the cheapest homes unaffordable. The lack of formal job opportunities and stable wages prevents many Ghanaians from saving towards homeownership.
The Way Forward
To address Ghana’s affordable housing crisis, a multi-stakeholder approach is needed. The government must implement land reforms to streamline ownership processes and curb speculation. Investing in local building material production will reduce reliance on imports and stabilize costs. Mortgage policies should also be reviewed to offer low-interest financing options for lower-income earners.
Furthermore, public-private partnerships should be encouraged to develop large-scale, low-cost housing projects. Infrastructure development in designated affordable housing zones must be prioritized, ensuring that roads, water, and electricity are in place to support housing expansion. Efficient urban planning and regulatory reforms will also be crucial in making housing projects faster and more cost-effective.
By addressing these structural challenges, Ghana can create a more inclusive housing market that caters to all income levels, ensuring that every citizen has access to decent and affordable accommodation.
Source : Joycelyn Marigold , Property Express Magazine