Rising rental costs in Lagos are no longer merely a concern about affordability but are increasingly becoming a constraint on productivity and economic stability, according to Elliot E. Odia, Founder and Group CEO of Wisecom Realty.
Reacting to a recent report by The Punch highlighting growing frustration among residents over escalating rents, Odia argued that the issue extends beyond household budgets. The publication reported that in several parts of Lagos, rent now consumes up to half — and in some cases more — of residents’ annual income, prompting calls for urgent intervention.
Odia noted that while the public discourse often frames the matter as a tenant crisis, the broader implications affect the labour market and overall city efficiency.
“When rent rises faster than earnings, people either relocate farther from their workplaces, accept substandard living conditions, or leave the city altogether,” he said. “Over time, this translates into lateness, increased staff turnover, declining service quality, and a weakened consumer economy. Lagos becomes harder to run.”
Housing as an Economic Lever
According to Odia, the next phase of housing development in Lagos will favour developers who can deliver quality, middle-class housing without compromising standards. He suggested that sustainable supply — rather than speculative pricing — will play a crucial role in stabilising the market.
He also advised renters to approach housing decisions strategically, rather than emotionally. This includes negotiating with market data, scrutinising service charge transparency, and assessing critical factors such as power uptime, water reliability, and cost management structures.
“A lower headline rent with unpredictable running costs can ultimately become the more expensive option,” he cautioned.
What’s Driving the Surge?
Industry observers remain divided on the primary drivers of Lagos’ rent escalation. Factors frequently cited include persistent supply shortages, rising construction costs influenced by inflation and currency pressures, and increasing landlord pricing power in high-demand areas such as Ikoyi, Victoria Island and Eko Atlantic.
As Lagos continues to expand economically and demographically, housing affordability is emerging as a central urban policy issue — one that intersects with workforce mobility, investor confidence and long-term competitiveness.
Stakeholders say addressing the imbalance between housing supply and income growth will be critical to ensuring that Africa’s largest commercial hub remains both liveable and economically dynamic.