Housing Crisis Deepens As High Rents Drive Lagos Residents To Suburbs

With Lagos’ housing deficit estimated at over 3.4 million units, thousands of low-income earners are being forced out of highbrow neighbourhoods due to soaring rents and widespread demolitions, relocating to distant suburbs where accommodation is relatively cheaper, LEADERSHIP can authoritatively report.

Findings reveal that tenants are increasingly moving from areas such as Lekki, Ikeja, Surulere, Ikoyi, Banana Island and Maryland to the outskirts and neighbouring Ogun State communities, including Sango-Ota, Ikorodu, Ikotun, Berger, Mowe and Arepo, in search of affordable housing.

Experts attribute the growing migration to skyrocketing rents, mass demolition and weak public housing delivery, factors that continue to displace thousands of low-income residents from Lagos’ urban core.

Investigations by LEADERSHIP show that annual rents in many parts of Lagos have risen sharply, with mini-flats now costing over N1 million, placing decent housing beyond the reach of average workers.

In core districts such as Ogba, Ikeja, Maryland, Festac, and Ojodu-Berger, a mini-flat rents for between N1 million and N1.3 million annually. Two-bedroom flats now cost between N1.3 million and N2 million, while three-bedroom apartments range from N1.7 million to N2.5 million.

Across the Lagos border, Ogun State towns including Sango-Ota, Arepo, Magboro, Mowe-Ibafo and Obasanjo Hilltop have witnessed rent increases of up to 100 per cent within a year. Two-bedroom flats now rent for between N700,000 and over N1 million, mini-flats go for N450,000 to N600,000, while a single room can cost as much as N250,000.

The rent shock has been further compounded by widespread demolitions across Lagos, which have displaced thousands of families and tightened an already strained housing market.

Communities such as Makoko, Oworonshoki, Otodo-Gbame, Badia East, Ijora Badia, Ilubirin, Alaba Rago, Sango-Tedo, Okun-Ajah, parts of Ajah and Lekki Phase II have experienced partial or large-scale demolitions in recent years. Many affected residents claim they received little or no notice before their homes were pulled down.

Speaking to LEADERSHIP, Chairman of the Association of Capital Markets Valuers (ACMV), Chudi Ubosi, said rising rents have pushed low-income tenants into poorly planned suburbs.

“These tenants are being forced into unplanned areas and poorly constructed buildings, many of which are not fit for habitation,” Ubosi said. “They move there only because rents are cheaper. Unfortunately, in a few years, those areas will also become unaffordable, pushing them even further away.”

He warned that the harsh economic climate has left average Nigerians exposed, forcing them to constantly improvise to survive.

Similarly, Executive Director of the Housing Development Advocacy Network (HDAN), Barrister Festus Adebayo, described Nigeria’s housing crisis as a systemic failure.

“Despite years of policies, conferences and promises, housing delivery continues to lag behind demand, while costs keep rising,” he said.

Adebayo blamed escalating construction costs, expensive land, high interest rates and weak housing finance systems for worsening affordability. He noted that rising prices of cement, steel, roofing materials, energy and transportation have made low-income housing projects increasingly unviable.

“When building costs rise suddenly, affordable housing projects are delayed, scaled down or abandoned. Developers are forced to pass the costs to buyers, instantly pricing homes beyond the reach of ordinary Nigerians,” he explained.

On land access, Adebayo added that although land appears abundant, serviced and legally secure land remains prohibitively expensive, with costs passed directly to tenants through higher rents.

Estate surveyor, Olufemi Oyedele, also warned that indiscriminate demolitions without adequate notice or compensation are discouraging property development.

“The lack of government commitment to affordable housing, combined with arbitrary demolitions, is undermining investor confidence and shrinking housing supply,” he said.