Ghana's housing crisis: Why finding an affordable home is becoming difficult

Finding a decent, affordable home has become one of the biggest financial challenges facing many people in Ghana. For some, the difficulty is buying a house. For others, even renting a modest room or apartment requires years of savings or borrowing.

Ghana’s housing problem is not simply about a shortage of buildings. It is also about the price of homes, the incomes of households, access to land, construction costs, financing and the type of accommodation being built. [1, 2]

The short answer:

Ghana needs more housing, particularly accommodation affordable to low- and middle-income households. [1, 2]
Many homes being developed through formal channels are beyond the financial reach of ordinary workers. [2, 3]
Land, building materials, infrastructure and financing make housing expensive to develop. [1, 2]
Population growth and urbanisation continue to increase demand for accommodation. [1, 4]
Rent advance requirements make it difficult for tenants to secure homes even when they can afford monthly rent. [5]
Some existing houses remain vacant while many people live in overcrowded or inadequate accommodation. [1, 6]
Ghana’s housing challenge is therefore both a supply problem and an affordability problem. [1, 2]

What is Ghana’s housing deficit?

A housing deficit is the estimated difference between the number of housing units a country needs and the number available under a particular calculation.

Ghana’s estimated housing deficit declined from approximately 2.8 million units in 2010 to 1.8 million units in 2021, according to the Ghana Statistical Service. The 2021 figure is also cited by the National Homeownership Fund and government officials as the country’s housing shortfall. [2, 4, 7]

This reduction represents progress, but it does not mean Ghana has solved its housing problem.

The National Homeownership Fund explains that the numerical housing deficit does not capture all the difficulties households face. Overcrowding, poor housing conditions, insecure occupancy and the inability to afford available homes remain serious challenges. [2]

For example, a household may technically occupy a housing unit but still live in a single room shared by several people. That household may not appear as needing an entirely new dwelling under every housing-deficit calculation, even though its living conditions are inadequate.

This is why the number of houses in a country is not the same as the number of people who can afford decent housing.

1. Ghana’s housing supply has not kept pace with demand

One of the fundamental problems is the imbalance between housing demand and supply.

Demand refers to the number of people or households seeking accommodation. Supply refers to the homes available for them to occupy.

Ghana’s population has grown considerably, while more people have moved into urban areas in search of employment, education, healthcare and business opportunities. These developments increase the need for housing, particularly in major cities such as Accra, Kumasi and Takoradi. [1, 4]

The National Homeownership Fund notes that Ghana’s urban population is expected to increase from 56.7% in 2021 to 60.7% by 2030. This means a larger proportion of the population will be living in towns and cities, increasing pressure on urban housing markets. [2]

When demand grows faster than the supply of suitable homes, people compete for available accommodation.

This can push up rents and property prices, particularly in locations close to employment, transportation and essential services.

2. Ghana is building houses, but many are not affordable

A common assumption is that Ghana’s housing crisis exists simply because the country is not constructing enough buildings.

However, the more complicated problem is that the homes being supplied do not always match the incomes and needs of the people who require them.

The National Homeownership Fund identifies the inability of low- and middle-income households to afford even the cheapest houses delivered through formal channels as a fundamental challenge. High house prices and a lack of affordable mortgage products contribute to this situation. [2]

The United Nations Special Rapporteur on the right to adequate housing, following a visit to Ghana in October 2026, also raised concerns that much of the housing being constructed remains beyond the reach of ordinary Ghanaians. The report highlighted expensive properties in wealthy parts of Accra and questioned whether some developments adequately respond to the housing needs of the population. [6]

This creates a mismatch.

A developer may construct an apartment that sells for hundreds of thousands of dollars. The apartment adds to the country’s housing stock, but it does little to help a worker who cannot afford even a modest monthly rent.

Housing supply must therefore be assessed not only by the number of units built, but also by their location, quality, price and suitability for the people who need them.

3. Land acquisition makes housing development difficult

Land is one of the most important inputs in housing development.

In Ghana, acquiring land can involve customary ownership systems, family land, multiple interests, documentation challenges and disputes over ownership. These issues can make land transactions complicated and costly. [1]

The 2024 Ghana Housing Profile by UN-Habitat identifies access to land, land affordability and the difficulties associated with formal land acquisition as important constraints on housing delivery. It also explains that serviced land, meaning land connected to essential infrastructure such as roads, water and electricity, can be unaffordable to many households. [1]

When land is expensive or difficult to acquire, developers face higher costs before construction even begins.

Those costs may eventually be reflected in the selling price or rent of the finished property.

Land disputes can also delay projects, increase legal expenses and discourage investment in housing.

This makes land administration and access to affordable, properly serviced land important parts of Ghana’s housing solution.

4. Building materials and construction costs increase house prices

Building a house requires materials, labour, equipment and infrastructure.

Cement, steel, roofing materials, plumbing systems, electrical fittings and other construction inputs can represent substantial expenses.

UN-Habitat’s Ghana Housing Profile identifies high construction costs, expensive building materials and difficulties financing housing development among the factors limiting the delivery of affordable homes. [1]

Currency movements can also affect construction costs when materials or equipment are imported or depend on imported inputs. Exchange-rate changes can increase the local-currency cost of those products. [8]

However, not every construction expense is caused by imports or currency depreciation. Local transportation, production costs, labour, financing and project management also influence the final price.

The result is that developers may struggle to construct houses at prices ordinary households can afford.

5. Infrastructure makes land and housing more expensive

A piece of land is not necessarily suitable for housing simply because it is available.

People need access to roads, electricity, water, drainage, sanitation and other services.

Where these facilities are missing, developers may have to provide them before or during construction.

UN-Habitat identifies inadequate infrastructure and high initial servicing costs as important housing-sector challenges in Ghana. Its profile explains that poor infrastructure can increase the cost of housing and reduce the quality of living conditions. [1]

For example, a developer may acquire land at a relatively low price but spend heavily on roads, drainage, electricity connections and water infrastructure.

The final cost of the development may therefore be much higher than the original land price suggests.

This is one reason why affordable housing requires coordinated planning between housing developers, local authorities and infrastructure providers.

6. Mortgage financing is difficult for many ordinary workers

A mortgage is a loan used to purchase a house, usually repaid over many years.

In countries with developed mortgage markets, households can spread the cost of buying a home over a long period rather than paying the entire purchase price immediately.

Ghana’s mortgage market remains relatively small.

The National Homeownership Fund reported that Ghana’s mortgage debt-to-GDP ratio, a measure comparing outstanding mortgage loans with the size of the economy, stood at just 0.18% at the end of 2025. It also reported that only eight of the country’s 23 universal banks offered mortgage products in a meaningful way. [2]

This indicates that mortgage financing plays a limited role in helping households purchase homes.

Several factors contribute to the difficulty:

High house prices relative to household incomes.
Limited access to long-term affordable funding.
Interest rates that can make monthly repayments expensive.
Difficulty proving stable income, especially for informal-sector workers.
Limited availability of mortgage products designed for lower-income households. [2]

Consider a worker who earns a regular salary but cannot demonstrate the financial history required by a lender.

That person may struggle to qualify for a mortgage even if they are capable of making monthly payments.

This is particularly important in Ghana, where many people earn income through small businesses, trading, freelance work and other informal activities.

The National Homeownership Fund has introduced schemes intended to improve access to local-currency mortgages and rent-to-own arrangements. However, its policy brief states that these interventions need to be expanded to match the scale of the housing affordability challenge. [2]

7. Low incomes make even basic housing difficult to afford

Housing affordability depends on more than the price of a property.

It also depends on how much a household earns.

A house costing GH₵200,000 may be relatively inexpensive compared with a luxury property. But for someone earning GH₵2,500 monthly, that house remains financially out of reach.

The same applies to rent.

A monthly rent of GH₵800 may appear manageable to a household earning GH₵8,000. It may be extremely difficult for someone earning GH₵2,000, particularly if that person also pays for food, transportation, electricity, healthcare and family responsibilities.

The National Homeownership Fund identifies low incomes, high house prices and the absence of affordable financing as central barriers to housing access in Ghana. [2]

This explains why simply constructing more houses may not solve the problem.

If the new houses remain too expensive for the people who need them, the affordability gap continues.

8. Rent advance creates another barrier to housing

Ghana’s rental market presents a separate challenge.

Many tenants are required to pay one or two years of rent in advance before moving into accommodation.

This can create a substantial financial burden, particularly for young workers, students, newly married couples and people relocating for employment.

For example, an apartment costing GH₵1,000 monthly requires GH₵12,000 for one year or GH₵24,000 for two years.

That amount may represent several months of a person’s total earnings.

Ghana’s Rent Act, 1963 (Act 220), generally prohibits demanding more than six months’ rent in advance for tenancies exceeding six months. Despite this legal provision, demands for longer advance payments remain a reported problem. [5]

The difficulty is that tenants may feel compelled to accept such arrangements because affordable alternatives are limited.

The government has introduced the National Rental Assistance Scheme, which helps eligible tenants obtain rent advances and repay them through monthly instalments. In 2026, the government also announced plans for an Easy Rent programme under the National Homeownership Fund to address the burden of large upfront payments. [9, 10]

Such programmes can help tenants access accommodation, but they do not automatically solve the underlying shortage of affordable rental housing.

9. Why are some houses vacant while people struggle to find homes?

This is one of the most important and misunderstood aspects of Ghana’s housing crisis.

The 2021 Population and Housing Census reported that approximately 12.7% of houses or apartments were empty at the time of the census. The United Nations Special Rapporteur cited this figure during the October 2026 country visit and raised concerns about vacant properties alongside the housing shortage. [6]

At first glance, this may seem contradictory.

How can a country have a housing deficit while some houses remain empty?

The answer is that a vacant house is not necessarily an affordable or suitable house for someone who needs accommodation.

Some properties may be:

Located far from employment opportunities.
Too expensive for ordinary households.
Unsuitable for the needs of prospective tenants.
Incomplete or awaiting occupation.
Held for investment or other purposes.
Located in areas where demand is weak. [1, 6]

The Special Rapporteur noted that some vacant homes may be in rural locations or places where housing demand is lower. The report also raised concerns about speculative investment in expensive properties in wealthy parts of Accra. [6]

Speculative investment means purchasing property partly in the expectation that its value will increase, rather than primarily to provide accommodation for immediate occupants.

This does not mean every vacant house is being deliberately withheld from tenants. The reasons for vacancy can differ substantially.

Nevertheless, the existence of vacant properties alongside widespread housing hardship raises important questions about housing policy, investment incentives and the efficient use of existing buildings.

10. Informal settlements are part of the housing crisis

When formal housing is too expensive or inaccessible, some people have little choice but to live in informal settlements or inadequate accommodation.

An informal settlement is a community where housing or land occupation may lack formal legal recognition, adequate infrastructure or compliance with planning requirements.

These settlements often provide an affordable way for people to live close to employment and economic opportunities.

However, residents may face challenges involving sanitation, drainage, water supply, overcrowding, security of tenure and the risk of eviction.

The United Nations Special Rapporteur’s October 2026 visit to Ghana highlighted the housing conditions of communities in informal settlements, including Old Fadama in Accra. The report called for improvements in water, sanitation, electricity and waste management, alongside protection against forced evictions without appropriate consultation and compensation. [6]

The important point is that informal settlements should not be understood only as a planning problem.

They also reflect the failure of the formal housing market to provide suitable accommodation for people with limited incomes.

Improving housing conditions requires addressing both the living environment and the economic circumstances that force people into inadequate housing.

11. Is Ghana’s housing crisis getting worse?

The answer depends on which part of the problem is being measured.

Ghana’s estimated numerical housing deficit fell from 2.8 million units in 2010 to approximately 1.8 million in 2021. That represents a reduction of about 35.4%. [4]

This is a significant improvement.

However, the National Homeownership Fund explains that qualitative housing problems, including overcrowding, poor housing conditions and insecure occupancy, remain widespread. It also notes that housing supply has not kept pace with increasing demand over the years. [2]

In January 2026, Ghana’s Minister of Works, Housing and Water Resources stated that the country continued to face a housing deficit of more than 1.8 million units, with affordability challenges preventing many low- and middle-income households from accessing safe and dignified housing. [7]

The United Nations Special Rapporteur also reported in October 2026 that authorities expected the housing shortfall to reach 2.3 million units by 2030 if construction and demographic trends continued at the reported rate. [6]

These figures should not be interpreted as meaning that every Ghanaian household is homeless.

The deficit is an estimate of housing need under a particular calculation. It does not measure the exact number of people without shelter, and it does not fully capture the quality or affordability of existing homes.

The more accurate conclusion is that Ghana has made progress in increasing housing supply, but affordable and adequate housing remains a serious challenge.

12. What is the government doing about Ghana’s housing crisis?

Ghana has introduced several housing programmes and policy initiatives intended to increase housing supply and improve affordability.

These include:

Affordable housing developments.
The National Homeownership Fund.
Mortgage support schemes.
Rent-to-own arrangements.
The National Rental Assistance Scheme.
District housing programmes.
Partnerships with private developers.
Efforts to improve access to land and infrastructure. [1, 2, 9, 10]

Rent-to-own is an arrangement in which a tenant occupies a property and may purchase it later under agreed terms, with payments structured to support eventual ownership.

The National Homeownership Fund has implemented mortgage and rent-to-own schemes on a pilot basis and has supported initiatives involving local-currency mortgage financing. Its policy brief argues that these interventions need to be expanded to address the scale of the housing problem. [2]

In January 2026, the government also reiterated its commitment to completing stalled affordable housing projects, including developments in Tema, Amrahia and Saglemi. [7]

However, housing programmes should be assessed by more than announcements or the number of buildings started.

The important questions are:

How many homes have actually been completed?
How many are occupied?
What do the homes cost?
Which income groups can afford them?
Are they connected to reliable infrastructure?
Can workers access them without excessive borrowing?
Are the projects maintained over time?

These questions determine whether housing interventions genuinely improve people’s lives.

13. What would actually make housing affordable in Ghana?

Solving Ghana’s housing crisis requires a combination of policies rather than one single intervention.

Build housing that matches people’s incomes

Affordable housing should be designed around the financial realities of low- and middle-income households.

This includes smaller homes, affordable rental units, incremental housing and developments that allow people to improve their homes gradually as their incomes increase.

Make land more accessible

Improving land administration, reducing disputes, making serviced land available and strengthening planning systems could reduce some of the obstacles facing housing development. [1]

Expand affordable housing finance

Ghana needs financing arrangements that allow households to purchase homes or access rental accommodation without excessive upfront payments.

Mortgage products should also recognise the financial circumstances of workers in the informal sector, provided repayment assessments remain responsible and realistic. [2]

Improve infrastructure before communities become overcrowded

Housing developments should be supported by roads, water, drainage, electricity, sanitation and transportation.

This would help reduce the additional costs households face when living in poorly serviced areas. [1]

Strengthen rental regulation

Existing laws should be enforced, and rental assistance programmes should be designed to reach people who genuinely need support.

A functioning rental market should protect both tenants and landlords while making accommodation accessible and payments manageable.

Upgrade informal settlements

Where possible, improving existing communities through infrastructure, sanitation and secure tenure can be more practical than simply demolishing them and relocating residents.

The United Nations Special Rapporteur recommended upgrading informal settlements in place and improving basic services while protecting residents from unjustified forced evictions. [6]

Make housing a long-term national priority

Housing projects often require years of planning, financing and construction.

A sustainable housing strategy should continue beyond individual political administrations, with transparent funding, measurable targets and consistent implementation.

Myths vs facts

Claim	Classification	Explanation
Ghana has no houses at all.	Myth	Ghana has millions of housing units, but shortages, affordability and poor housing conditions remain significant. [2, 4]
The housing deficit means exactly 1.8 million people are homeless.	Myth	The deficit is an estimate of housing shortfall, not a direct count of homeless individuals. [4]
Every vacant house is being deliberately withheld from tenants.	Unproven	Vacancies have different explanations, including location, affordability, suitability and investment decisions. [1, 6]
Ghana’s housing deficit has reduced since 2010.	True	Official estimates declined from 2.8 million units in 2010 to about 1.8 million in 2021. [4]
Building more luxury apartments automatically solves the housing crisis.	Myth	Housing must be affordable and suitable for the households that need it. [2, 6]
Housing affordability depends only on rent or house prices.	Myth	Household income, financing, transport, infrastructure and living conditions also matter. [1, 2]
Ghana’s housing crisis is only an Accra problem.	Myth	Housing challenges affect urban and rural areas, although the pressures and causes vary by location. [1]
Informal settlements exist partly because formal housing is unaffordable.	True	Research and UN reporting identify the inability to access formal affordable housing as a major factor in inadequate and informal housing conditions. [2, 6]

Bottom line

Ghana’s housing crisis is not simply a matter of constructing more buildings. It is a question of whether the homes being built are affordable, suitable, accessible and connected to the services people need.

The country has made progress in reducing its estimated housing deficit, but millions of people continue to face difficulties securing decent accommodation. Expensive land, construction materials, limited mortgage financing, low household incomes, rent advance demands and inadequate infrastructure all contribute to the problem.

The existence of vacant houses alongside overcrowded communities also demonstrates that housing availability and housing affordability are not the same thing.

Ultimately, Ghana needs a housing system that responds to the needs of ordinary people, not only those who can afford expensive properties.

A house should not be a luxury that only a small proportion of the population can realistically afford. Decent housing is a basic human need, and making it accessible should remain one of Ghana’s most important development priorities.

Disclaimer: This article is intended for general educational and informational purposes only and does not replace professional financial, legal or housing advice. If you notice an error or would like to send feedback or corrections, please contact TrenderHQ.