Expensive real estate prices exacerbate the housing affordability dilemma, making it more difficult for regular people to find adequate and affordable housing. Rapid urbanization in many African cities, combined with a scarcity of housing, drives up property costs, pushing low- and middle-income people to the periphery of the market. This also is either a consequence or a cause of stress on the overall economy of any given country.
- Business Insider Africa presents the top 5 African cities with the most unaffordable real estate in 2024.
- This list is courtesy of Numbeo, and is representative of its “Price to Income Ratio.”
- Lagos ranks number 1 on the list.
Rising real estate prices accentuate socioeconomic divides in urban areas, drawing a clear line between the rich and the underprivileged.
The rising value of real estate makes homeownership unattainable for many people, while a select minority enjoys the advantages of investment and property ownership.
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Inequality and social discontent are exacerbated by this growing wealth disparity, which not only widens social divides but also limits social mobility and economic prospects for underprivileged groups.
Additionally, as developers and investors want to profit from lucrative chances for urban redevelopment and gentrification, expensive real estate contributes to displacement and forced evictions.
Urban rehabilitation and beautification initiatives frequently result in the eviction, displacement, and homelessness of vulnerable populations, such as low-income people and informal settlers.
With that said, here are the top 5 African cities with the most unaffordable real estate in 2024 based onNumbeo’s “Price to Income Ratio.” This list does not represent the cities with the overall most expensive real estate prices, but rather real estate that is not affordable to the residents of the region.
The Price to Income Ratio is a key indicator of the affordability of buying an apartment; a lower ratio denotes higher affordability. Usually represented as years of income, it is computed as the ratio of median apartment costs to median family disposable income.
