Magazine article African Business

Meeting Ghana's Ever Widening Housing Supply Challenge Driven by the Country's Urbanization

Magazine article African Business

Meeting Ghana's Ever Widening Housing Supply Challenge Driven by the Country's Urbanization

Article excerpt

Ghana's urban housing deficit is wide and growing. Urban housing in Ghana is informal, overcrowded and predominantly rental or rent-free without any financial collateral. About 90% of housing in urban Ghana is built without local authority control; almost 60% of households occupy single rooms, and only 25% of households own their housing (UNHabitat 2012). Households on average spend less than 10% of their disposable income on housing, but 35% of households can only afford housing for US$6,000 or less. Estimates indicate that on average, the cheapest housing price is around $3,700 (compared to a GDP per capita around $1,600).

The deficit in the Ghanaian urban housing sector becomes even more critical when housing is broadly defined as not only comprising the physical shelter but also related services and infrastructure as well as the inputs for its production.

Rapid urbanisation and urban growth has triggered a situation whereby the supply of housing lags behind effective demand, especially in large metropolitan areas. The annual housing stock is growing, but at a relatively slower rate compared to the rate of growth of the total population. Estimates indicate that Ghana's housing gap is around 70,000 to 120,000 units per year. By 2020, Ghana requires a total of 2 million new dwellings (that is, 5.7 million rooms, or about 600,000 new units per year).

The highest demand for new housing is in Kumasi and Accra. The housing deficit situation in Accra in 2010 was 72% of the total deficit for the Greater Accra region while the deficit for Kumasi was 72% of the total for the Ashanti region. The inability of the existing housing delivery system (supply) to meet effective demand results in a situation where many urbanite Ghanaians are forced to live in slums or areas of poor housing conditions characterised by overcrowding and low-quality or absent basic services, such as in-house water supply, toilets, and bathrooms. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.