Ghana’s Housing Deficit and the Search for Solutions: ASJ 2026 Intelligence Brief

From a 1.8-million-unit gap to a GH¢3 billion revolving fund — the architecture of a national crisis and the emerging framework for resolution

Executive Introduction

Ghana is in the grip of a housing crisis that has been decades in the making. The national housing deficit is currently estimated at more than 1.8 million units —a gap that has widened despite decades of policy interventions . This shortage is not merely a statistical abstraction. It translates into overcrowded living conditions, the proliferation of informal settlements, soaring property prices, and millions of Ghanaians locked out of homeownership .

The drivers are structural and deeply interconnected. Rapid urbanisation—with over half of Ghana’s population now living in urban centres and projections indicating this could rise to over 72 per cent by 2050—has created unprecedented demand for housing in Accra, Kumasi, Takoradi, and other cities . Rising land values, high construction costs driven by expensive imported materials (cement prices have surged from GH¢8.50 per 50kg bag in 2008 to over GH¢110 today), and cripplingly expensive long-term financing have pushed homeownership beyond the reach of most Ghanaians . Mortgage penetration remains extremely low, with the mortgage-to-GDP ratio estimated at less than one per cent .

This ASJ report examines the scale of Ghana’s housing deficit, the structural factors that sustain it, the policy responses currently being deployed, and the persistent challenges that threaten to undermine even the most ambitious solutions. The evidence suggests that the current government has articulated a more comprehensive housing strategy than its predecessors, anchored by a GH¢3 billion revolving housing fund and a commitment to cedi-denominated mortgages . However, the gap between policy announcement and project completion remains the central challenge.

Part 1: The Scale of the Deficit — 1.8 Million Units and Counting

The numbers that define Ghana’s housing crisis are stark. According to the Ministry of Works, Housing and Water Resources, Ghana’s housing deficit is estimated at over 1.8 million units . President Mahama, speaking at the sod-cutting ceremony for the Green City Housing Project in Kumasi, cited a figure of more than 1.5 million units . The discrepancy reflects different methodological approaches, but the scale of the problem is unambiguous: Ghana needs millions of additional homes.

This deficit is not static. It is growing. Rapid urbanisation is the primary accelerator. More than half of Ghana’s population already resides in urban centres, and projections indicate that this could rise to over 72 per cent by 2050 . Cities such as Accra, Kumasi, and Takoradi will continue to experience rapid population growth driven by migration from rural areas . As Minister Kenneth Gilbert Adjei explained, “the demand for housing in metropolitan centres such as Accra, Kumasi, and Takoradi has grown exponentially. Unfortunately, the supply of housing has not kept pace with this demand, resulting in overcrowding, soaring property prices, and the expansion of informal settlements” .

The deficit has tangible consequences. Landlords exploit supply shortages, demanding two or more years of advance rent, and some price rent in foreign currency . In areas like Nungua in the Greater Accra Region, tenants describe a situation where demand far exceeds supply, leaving them with little bargaining power. Alternative accommodations often charge over GH¢4,000 per month and require a two-year advance—an impossible burden for low- and middle-income earners .

Part 2: The Structural Drivers — Why the Deficit Persists

The housing deficit is not a consequence of a single failure. It is the product of three interconnected structural weaknesses.

Driver 1: High Construction Costs

Building materials in Ghana are expensive, and much of the cost is imported. Cement prices, a key input, have surged from GH¢8.50 per 50kg bag in 2008 to over GH¢110 today, with 42.5R cement selling for up to GH¢120 [citation:?]. The Ghana Real Estate Developers Association (GREDA) has expressed concern over the reluctance of cement producers to reduce prices despite the cedi’s sustained appreciation, accusing manufacturers of being “too greedy and not fair to the system [citation:?]. 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.

The cost of land is another major driver. Rising land values, particularly in Accra and Kumasi, have pushed homeownership beyond the reach of many Ghanaians . Developers often pass the cost of providing infrastructure—roads, water, electricity—onto buyers, making houses unaffordable for many citizens .

Driver 2: Cripplingly Expensive Finance

Mortgage penetration in Ghana is extremely low, with the mortgage-to-GDP ratio estimated at less than one per cent . Nearly six out of ten Ghanaians require financial assistance to purchase a home, yet banks are reluctant to offer long-term mortgages because most of their funds are short-term deposits .

Dr Frank Gyamfi-Yeboah, Senior Lecturer in the Department of Land Economy at KNUST, explained the structural barrier: “Banks struggle to provide affordable long-term mortgages because most of their funds are short-term deposits. To address this, there must be the establishment of a mortgage refinance company to provide liquidity support to banks and make mortgage financing more affordable” .

The National Homeownership Fund (NHF) has noted that macroeconomic instability, high inflation, elevated lending rates, currency depreciation, land tenure challenges, and low-income levels have historically limited access to mortgages and discouraged long-term investments in housing finance .

Driver 3: Policy Inconsistency

The private sector has been reluctant to invest in affordable housing because of policy discontinuity across political administrations. Jolanda Castagna, CEO of Akka Kappa Ghana, warned that “every new government in Ghana has tended to rebrand or abandon its predecessor’s housing programmes rather than build on them, and that inconsistency is precisely what makes private sector commitment difficult to sustain” .

The result is a housing sector dominated by self-building—an estimated 90 per cent of Ghana’s housing stock has been built incrementally, with homes taking five to 15 years to complete [citation:?]. This approach, while a necessity for millions, does not deliver housing at the scale required to close the deficit.

Part 3: The Government’s Response — A Comprehensive Housing Agenda

The Mahama administration has articulated a more comprehensive housing strategy than its predecessors, anchored by several key initiatives.

The GH¢3 Billion Revolving Housing Fund

The centrepiece of the government’s housing agenda is 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 .

How it works: Housing agencies such as the State Housing Company (SHC) and the Tema Development Corporation (TDC) will draw credit from the fund to build houses. Banks will then provide long-term mortgages for workers to purchase the homes, with repayment periods of 15 to 20 years .

A crucial feature: All homes under the scheme will be priced and mortgaged in cedis rather than dollars . President Mahama explained: “Let me announce that these houses are going to be indexed in cedis, not dollars” . This removes the currency risk that has historically turned manageable repayments into crushing burdens whenever the cedi depreciated .

The revolving structure: As mortgages are repaid, the money returns to the fund to finance further construction, creating a self-sustaining cycle of housing delivery .

The Green City Housing Project

The flagship project under this framework is the Green City Housing Project at Dedesua, near Kumasi. Located on 200 acres of land provided by the Asantehene, Otumfuo Osei Tutu II, the project is expected to deliver more than 1,000 housing units in an integrated and environmentally sustainable community .

Project specifications:

• Total units: 1,067 residential units over five years

• Unit mix: Two, three, and four-bedroom detached houses; two-bedroom semi-detached homes; and one, two, and three-bedroom apartments

• Phase one: 214 units expected by the fourth quarter of 2027

• Amenities: Recreational facilities, commercial spaces, and open areas for public events 

A key commitment: President Mahama directed the Minister of Roads and Highways to absorb the cost of constructing roads and drainage systems at the project site under the government’s infrastructure flagship programme, the “Big Push.” The President explained: “If we do not do this, the cost will be added to the houses and make them more expensive” .

Potential cost reduction: The State Housing Company’s Managing Director, John S. Bawah, estimated that government support for infrastructure could reduce property prices by between 25 and 40 per cent below prevailing market rates .

Completion of Stalled Projects

The government has committed to completing the long-stalled Saglemi Affordable Housing Project, a housing estate initiated during a previous NDC administration . Other projects being prioritised include the Ho Oxygen City, the District Housing Programme, and a low-cost housing scheme for public sector workers such as nurses, teachers, doctors, and civil servants .

Infrastructure Support

The government has committed to absorbing the cost of roads, drains, and gutters in new housing estates under the “Big Push” programme, so that infrastructure costs are not passed on to homebuyers . 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 [citation:?].

Legal and Regulatory Reforms

The government has also announced its commitment to reforming the rental housing sector, improving affordability, and ensuring fairness and dignity for tenants . President Mahama stated that Ghana must move “from a housing landscape defined by shortage to one built on shared prosperity, where decent shelter was treated not as a privilege but as a right for every Ghanaian” .

Part 4: The Role of the Private Sector and Innovative Financing

The government cannot close the housing deficit alone. Private sector participation and innovative financing mechanisms are essential.

The National Homeownership Fund (NHF)

The NHF has been working to expand mortgage access through several initiatives :

CEO Prosper Hoetu noted that the NHF is preparing a new five-year strategic direction aimed at de-risking investments in the housing sector and expanding access to mortgages and alternative homeownership products .

The Call for Mortgage Refinance

Dr Frank Gyamfi-Yeboah called for the establishment of a mortgage refinance company to provide liquidity support to banks and make mortgage financing more affordable. He also proposed stronger state involvement in the development of new communities through a Master Plan Community Developer (MPCD) framework to provide planned communities with infrastructure and fewer land litigation issues .

The Private Sector’s Role

Jolanda Castagna urged the government to shift its focus from simply building houses to creating the financial schemes needed to make housing affordable . She argued that Ghana needs:

“Long-term financing mechanisms such as mortgage guarantee schemes, dedicated housing funds, and incentives that attract private capital into the affordable housing segment” .

She stressed that “affordable housing would not be delivered at scale unless government de-risked the sector through measures such as land contributions, guarantees, and subsidised financing mechanisms that would encourage private capital participation” .

Part 5: The Persistent Challenges

Despite the policy momentum, significant challenges threaten to undermine the government’s housing agenda.

Challenge 1: The Implementation Gap

The gap between policy announcement and project completion has historically been wide in Ghana’s housing sector. The Saglemi project, initiated years ago, remains stalled. The Ho Oxygen City project has not been completed. The District Housing Programme has yet to deliver housing at scale. The Green City Project’s first phase is expected to be completed by the fourth quarter of 2027—over a year away .

Challenge 2: The Cement Price Challenge

High building material costs remain a primary driver of high housing costs. The government has passed legislation to regulate cement pricing and mandate manufacturers to disclose their ex-factory prices, yet enforcement appears ineffective [citation:?]. GREDA has accused cement manufacturers of being “too greedy and not fair to the system,” noting that while the cedi has strengthened, cement prices have remained stubbornly high and have even increased.

Challenge 3: Financing Gaps

Despite the GH¢3 billion revolving fund, the scale of the financing required is much larger. The NHF has noted that “high construction costs and expensive loans continue to push housing prices beyond the reach of many citizens” . The mortgage-to-GDP ratio remains less than one per cent, indicating that formal mortgage markets are not yet functioning at scale .

Challenge 4: Policy Continuity

Jolanda Castagna’s warning about policy discontinuity across political administrations is a real concern . The GH¢3 billion revolving fund is an ambitious initiative, but it remains to be seen whether future governments will sustain it or rebrand it.

Challenge 5: The Affordability Trap

Despite government commitments to “affordable” housing, the homes produced are often not affordable for the target population. Private legal practitioner Austin Kwabena Brako-Powers has criticised government housing projects, 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.

ASJ Conclusion: A Crisis in Search of a Solution

Ghana’s housing deficit—estimated at more than 1.8 million units —is one of the most pressing challenges facing the country. The gap between supply and demand is growing, driven by rapid urbanisation, high construction costs, and cripplingly expensive finance .

The government has articulated a comprehensive housing agenda anchored by a GH¢3 billion revolving fund and a commitment to cedi-denominated mortgages . The Green City Housing Project in Kumasi is the flagship initiative under this framework, expected to deliver more than 1,000 housing units with government-funded infrastructure . The completion of stalled projects such as Saglemi and Ho Oxygen City is also being prioritised .

But policy announcements are not the same as project completion. The challenges are significant: cement prices remain high, financing gaps persist, and the implementation gap between announcement and delivery has historically been wide . As Jolanda Castagna warned, “every new government in Ghana has tended to rebrand or abandon its predecessor’s housing programmes rather than build on them, and that inconsistency is precisely what makes private sector commitment difficult to sustain” .

The search for solutions to Ghana’s housing crisis is not a search for a single silver bullet. It is a search for sustained, co-ordinated action across multiple fronts: government policy, private sector investment, innovative financing, regulatory enforcement, and the political will to see projects through. The architecture of a solution exists. The question is whether the execution will match the ambition.

Quick Reference: Ghana’s Housing Crisis at a Glance

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.

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