Rent Crisis Deepens as Tenants Struggle With Soaring Housing Costs in Calabar, Lagos, Abuja

Rent Crisis Deepens as Tenants Struggle With Soaring Housing Costs in Calabar, Lagos, Abuja

The rising cost of accommodation is placing growing pressure on households across Nigeria, with tenants in Calabar, Lagos and Abuja struggling to cope with sharp increases in house rents, agency charges and other costs associated with securing accommodation.

The situation has become particularly difficult for low- and middle-income earners, students, young workers and families whose incomes have failed to keep pace with the rapid increase in housing costs.

In Calabar, the problem has become especially pronounced in recent years, with residents reporting that rents for ordinary accommodation have increased several times over.

A one-bedroom apartment that could previously be rented for about ₦100,000 a year is now being offered for around ₦1.2 million in some parts of the city, while a self-contained apartment that once cost about ₦50,000 can now attract rents of approximately ₦700,000.

Two-bedroom apartments that were previously available for about ₦150,000 have also risen to around ₦2 million in some locations.

The increases have made it increasingly difficult for ordinary residents to remain in the city, particularly as the rent increases have not always been matched by improvements in the quality or condition of available properties.

Some tenants have complained that buildings in parts of central Calabar remain poorly maintained despite the substantial increases in rent. Properties in areas including Marian, Henshaw Town, Akim, Yellow Duke, Atakpa, Goldie, Afokang and parts of Calabar South have been cited among locations where accommodation costs have risen sharply.

In some cases, tenants say they are paying significantly more for old buildings with leaking roofs, cracked walls, poor ventilation and inadequate maintenance.

The pressure is particularly severe among students because of the concentration of tertiary institutions in the city.

With institutions such as the University of Calabar, University of Cross River State, the School of Nursing and the School of Health Technology attracting students, demand for accommodation continues to rise.

Some students have resorted to sharing rooms with several other people to reduce costs. Others have moved farther away from their institutions, while some families have reportedly sent unemployed graduates back to their communities because they can no longer afford accommodation in the city.

The rent itself is also only part of the financial burden.

Prospective tenants may have to pay agency fees, agreement fees, inspection charges and caution fees, significantly increasing the amount required before they can move into a property.

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The situation has triggered calls for stronger regulation of the activities of estate agents and greater protection for tenants.

The Cross River State House of Assembly has already considered measures aimed at addressing the rent crisis in Calabar, including moves to restrict the activities of property agents and strengthen oversight of rent increases.

However, the continuing complaints from tenants suggest that regulation alone may not immediately resolve the problem.

Landlords and property owners, on the other hand, have pointed to the dramatic increase in the cost of construction and property maintenance.

The price of cement, steel, roofing materials, labour, transportation and other building inputs has risen significantly over the years, increasing the cost of constructing and maintaining residential properties.

For landlords, those costs are increasingly being reflected in rents.

The same pressure is evident in Lagos, where accommodation remains one of the biggest expenses confronting residents.

As Nigeria’s commercial capital continues to attract workers, businesses, students and migrants from different parts of the country, demand for housing remains high.

Rents vary significantly across Lagos, but tenants in several areas have reported substantial increases, particularly in neighbourhoods close to major commercial centres, transport routes and employment opportunities.

For many residents, the challenge is not simply finding an apartment but raising the large amount of money required to secure one.

Annual rent payments, combined with agency and legal fees, can require tenants to spend several months’ income at once.

Some households have responded by moving from more expensive parts of Lagos to areas on the outskirts of the metropolis.

But moving farther away from the city centre often creates another financial burden.

Lower rent can mean longer commuting distances and higher daily transportation costs, especially for workers who travel into commercial and business districts every day.

Consequently, some tenants face a difficult choice between paying higher rent closer to work or accepting cheaper accommodation farther away and spending more money and time commuting.

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The situation is similarly challenging in Abuja, where rapid urban expansion and sustained demand for housing have pushed accommodation costs higher in many districts.

The Federal Capital Territory has experienced significant population growth, while the concentration of government institutions, businesses and other economic activities continues to attract workers and residents.

As demand rises, many tenants have been forced to look beyond established districts for relatively affordable accommodation.

Neighbouring suburbs may offer lower rents, but the savings can be eroded by higher transportation costs, longer journeys and additional expenses associated with daily commuting.

For some residents, particularly workers on fixed salaries, the combined burden of rent, transportation, food, electricity and other household expenses has made urban living increasingly difficult.

The housing problem is therefore becoming closely linked to Nigeria’s broader cost-of-living crisis.

As prices of food, energy, transportation and other essentials rise, households have less disposable income available for rent.

At the same time, landlords face higher costs of maintaining properties and replacing damaged facilities.

The result is an increasingly difficult relationship between tenants seeking affordable accommodation and landlords attempting to recover rising property and maintenance expenses.

Another major concern is the role of property agents.

Tenants in different cities have complained about agents allegedly increasing asking prices, adding multiple charges and sometimes creating competition among prospective tenants willing to pay more.

Because agency fees are frequently calculated as a percentage of rent, a higher rent can also translate into higher earnings for agents.

This has fuelled calls for stronger regulation of the real estate and rental market, including clearer rules on agency charges, transparent rental agreements and penalties for unlawful or unjustified fees.

Housing advocates have also stressed the need to address the supply side of the problem.

Without a significant increase in the availability of affordable housing, efforts to control rent increases may have limited impact in cities where demand continues to outstrip supply.

The situation in Calabar illustrates this challenge clearly. The city’s relatively limited space for expansion, combined with increasing demand from students, workers and businesses, has put pressure on its existing housing stock.

Lagos faces an even larger challenge because of its population density and high demand for accommodation near economic centres.

Abuja, meanwhile, continues to expand into surrounding communities as residents search for alternatives to expensive accommodation within the city.

The movement towards outer suburbs has created a wider urban housing problem, as increased demand eventually pushes rents higher in areas that were previously regarded as affordable.

For tenants, the consequences go beyond the inconvenience of paying more.

High rents can force families to reduce spending on food, healthcare and education. Students may be pushed into overcrowded accommodation, while workers may relocate farther from their jobs and spend more time and money commuting.

Some households may also be compelled to share accommodation with relatives or friends, while others return to their hometowns when they can no longer sustain urban living costs.

The pressure has renewed calls for governments at both federal and state levels to expand affordable housing programmes, improve urban planning and enforce existing tenancy regulations.

There are also calls for policies that would encourage private developers to build more low- and middle-income housing rather than focusing predominantly on high-end properties.

For tenants, the immediate concern remains finding accommodation that matches their incomes.

As house rents continue to rise across Nigeria, the experiences of residents in Calabar, Lagos and Abuja show how housing is becoming an increasingly significant component of the country’s cost-of-living challenge.

Unless housing supply expands significantly and the cost of construction, transportation and other essential services becomes more manageable, many households may continue to devote an increasing share of their income to keeping a roof over their heads.

Rent Crisis Deepens as Tenants Struggle With Soaring Housing Costs in Calabar, Lagos, Abuja