WHY ARE RENT COSTS RISING?
We can attribute the rising rental cost to the following:
- High Inflation rate.
- The High cost of building materials translates into higher rents.
- Absence of adequate alternatives.
- The uptick in demand for 2-bedroom apartments, mini flats, and studio apartments.
- Shift in focus by landlords/owners to short-let apartments.
- Overcrowding in the rental market.
Steady rising housing costs can be a substantial expense and the amount spent on rent can significantly impact your finances. The high inflation rate coupled with rising demand has led to a spike in the rents of accommodation by over 30% in the last 12-24 months.
The rent for a mini-flat in areas like Magodo Isheri, Ogudu GRA, Gbagada in 2020 was an average of N500K monthly. Today same mini-flat costs upwards of N900K -1.5Million. (Also represent figures in Graphical form)Conversely, rent for a two-bedroom apartment in the same areas in 2020 was between N1M-1.2M. As of today, the same apartment goes for N1.5M-N2.5M.
How does this impact you?
- Reduction in disposable income.
- Many people are moving back to their parent’s or family homes.
- Lower savings The higher burden for tenants.
- Higher cost of food items results in a further reduction in disposable income
How to mitigate and reduce your cost of rent?
- Select an affordable location
- Embrace shared living
- Be Flexible
How much was your rent in 2020 and How much are you paying now? Tell us in the comment section