Why Affordable Housing Remains Elusive in Ghana: ASJ 2026 Intelligence Brief

For millions of Ghanaians, the dream of owning a home—or even renting a decent one—remains stubbornly out of reach. The gap between political promises and lived reality is vast. At the core of this crisis are three deeply entrenched, interconnected structural problems: a massive supply deficit, a crippling cost burden driven by high material prices and expensive finance, and a persistent failure of regulatory enforcement.

Part 1: The Deficit — A Gap That Keeps Widening

The foundational problem is a simple one of arithmetic: demand far outstrips supply. Ghana’s housing deficit is estimated at approximately 1.8 million units . The country’s rapid urbanisation and population growth have exacerbated the shortage, leading to overcrowded living conditions, the proliferation of informal settlements, and inflated housing costs .

With projections that urbanisation could rise to over 72% by 2050, the pressure on already-strained housing markets will only intensify . The supply of new homes has simply failed to keep pace with demand, creating a system where landlords hold all the power .

The consequences are felt acutely on the ground. In areas like Nungua in the Greater Accra Region, tenants describe a situation where demand far exceeds supply, leaving them with little bargaining power . Despite existing regulations that limit rent advances, many landlords continue to demand two or more years of advance payment, with some pricing rent in foreign currency . One resident noted that alternative accommodations often charge over GHs 4,000 per month and require a two-year advance, describing the situation as exploitative, particularly for low- and middle-income earners .

Part 2: The Cost Burden — A Crisis of Affordability

Even when housing is available, it is often unaffordable. A vicious cycle of high construction costs and limited financing keeps homeownership out of reach for most.

The Cement Price Trap

High building material costs are a primary driver of high housing costs. The Ghana Real Estate Developers Association (GREDA) has repeatedly expressed concern over the reluctance of cement producers to reduce prices, despite the cedi’s sustained appreciation . Developers have accused cement manufacturers of being “too greedy and not fair to the system,” noting that while the cedi has strengthened significantly, cement prices have remained stubbornly high and have even increased at some point .

An analysis of the market reveals that a legislative instrument (L.I. 2480) was passed to regulate cement pricing and mandate manufacturers to disclose their ex-factory prices, yet enforcement appears ineffective . Furthermore, there are concerns that Heidelberg Materials’ control over both Ghacem and Supacem (through an acquisition) has created a monopoly that undermines transparency in pricing . Between 2008 and 2024, the price of a 50kg bag of cement skyrocketed from GH¢8.50 to over GH¢110, and today, a bag of 42.5R cement sells for up to GH¢120, while other brands are sold at GH¢110 to GH¢100 .

Mortgages: A System Built for the Few

Limited access to mortgage finance is another major barrier . Home mortgage loans are not readily available, making it difficult for people to purchase homes. The existing legal and regulatory framework around mortgage finance is weak, hindering the development of a thriving home mortgage market .

For those who can access a mortgage, the cost can be exorbitant. The government’s own affordable housing projects are often priced out of the reach of ordinary Ghanaians. Private legal practitioner Austin Kwabena Brako-Powers criticised the approach, stating that “it is not affordable housing; it is expensive housing,” explaining that many units are sold to the highest bidder rather than targeted at low- and middle-income workers . He noted that prices of some housing units range between $250,000 and $1 million, making them inaccessible to the average public sector worker .

Part 3: The Enforcement Failure — When Laws Don’t Protect

The problem is compounded by a pervasive failure to enforce existing regulations designed to protect tenants.

The Rent Act: A Toothless Tiger

Despite clear laws limiting advance rent payments, compliance is low due to weak enforcement . Residents in Nungua, who are aware of the laws, admitted that desperation often forces them to comply with abuses rather than report cases . As one resident stated, the fear of losing a potential place to live discourages tenants from challenging landlords .

Legal practitioners have called for the establishment of a Ghana Rent Regulatory Authority to strengthen enforcement and protect tenants, arguing that the current rent control system is not fit for purpose .

The Spending Imbalance

Mr. Brako-Powers also pointed to a broader fiscal imbalance as a contributor to the crisis. He noted that about 39% of the national budget is spent on public sector compensation, while only about 6% is allocated to capital expenditure—which includes infrastructure and housing . This severe imbalance affects infrastructure development and contributes to shortages in key sectors. He also estimated that labour unrest cost the country over GH¢1.4 billion in 2024 and about GH¢630 million in 2025, funds that could have been directed towards development.

Part 4: A Glimmer of Hope? Emerging Solutions

While the picture is bleak, the government has announced a series of policy interventions that could begin to address these deep-seated issues.

The GH¢3 Billion Revolving Fund

A landmark initiative is the establishment of a GH¢3 billion revolving fund to finance the construction of affordable homes and provide workers with mortgages repayable over 15 to 20 years . The fund will be jointly created by the government, organised labour, the Social Security and National Insurance Trust (SSNIT), and Republic Bank .

A crucial feature of this scheme is that all homes will be priced and mortgaged in cedis rather than dollars, removing the currency risk that has historically turned manageable repayments into crushing burdens . The revolving structure means that as mortgages are repaid, the money returns to the fund to finance further construction .

Infrastructure Support

The government has also committed to absorbing the cost of roads, drains, and gutters in new housing estates under its “Big Push” infrastructure programme, so that infrastructure costs are not passed on to homebuyers . Further, the Minister for Local Government has stated that government support for serviced land and trunk infrastructure can reduce housing delivery costs by as much as 40 per cent .

Quick Reference: Why Affordable Housing Remains Elusive

Last Updated on June 19, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

accrastreetjournal.com/