Housing Gap Widens as Rising Costs Push Youth Further from Homeownership

Story: Written by springnewsng February 26,2026
The aspiration of owning a home is increasingly slipping beyond the reach of young Nigerians as property prices continue to rise far faster than incomes. In major cities such as Lagos, Abuja, and Port Harcourt, the price of entry-level homes has climbed so sharply that many young professionals are locked out, even after years of disciplined saving.
This concern dominated discussions at the Property Investment and Smart Cities Conference organised by BusinessDay, themed Property Investment in an Era of Capital Discipline. Real estate experts warned that unless affordability is prioritised, youth homeownership will remain an elusive goal.
Bright Okereke, co-founder of Flinx Realty Limited, said developers must urgently refocus on affordable housing tailored to young professionals. He noted that although young people make up over 60 percent of Nigeria’s population, housing supply does not reflect their earning realities. According to him, the shortage of suitable housing has contributed to delayed marriages and a growing number of single adults confined to small studio or one-bedroom apartments.
Okereke described the trend as a social challenge that demands immediate attention, adding that his firm is responding by developing affordable studios and one-bedroom apartments in Yaba and Lekki to meet this underserved demand.
On the financing side, Olurogba Orimalade, principal partner at Rogba Orimodade & Co, identified access to affordable, large-scale funding as a major bottleneck driving up housing costs. While high prices of cement, steel, and labour are often blamed, he stressed that expensive financing is an equally critical factor pushing property prices beyond reach.
Adding another layer to the challenge, My-Ace China, founder of The Mayor of Housing Limited, attributed soaring rents and building costs to Nigeria’s heavy dependence on imported construction materials. He noted that more than 60 percent of raw building inputs are sourced from abroad, making local housing vulnerable to foreign exchange pressures. To counter this, he revealed plans for a low-cost housing scheme offering affordable two-bedroom bungalows and self-contained apartments for sale, aimed at expanding homeownership rather than just rentals.
The debate over luxury housing
From another perspective, Erejuwa Gbadebo, managing director of Eko Development Company, argued that luxury housing remains essential to a balanced economy. She said high-income earners, who form a significant part of the tax base, deserve premium housing options that also support Nigeria’s appeal to international investors. Drawing comparisons with global cities like New York and London, she maintained that every functional economy accommodates different income groups within its housing market.
Lagos targets smart planning and investor confidence
Meanwhile, Oluyinka Abiodun, Lagos State Commissioner for Physical Planning and Urban Development, said the state government is working to reshape property investment through transport-oriented development, smart city initiatives, and public-private partnerships. According to him, improved transport networks will allow residents to live in more affordable areas while commuting efficiently to work, reducing pressure on city-centre housing.
Abiodun added that investments in smart, green, and sustainable real estate—alongside commercial and industrial estates—are designed to reduce risks, attract capital, and build a property market that balances profitability with social inclusion.