Housing costs make up a large part of the monthly budget for many city residents, impacting not only their personal finances but also their more general economic and social impact.
This year has made it clear that high rents can seriously impact housing, businesses and the general process of urban development, especially in a country like Nigeria, which has experienced one of the toughest economic times in recent history.
High rents are also impacting mobility.
To find affordable housing, individuals are often forced to live far from their employers, resulting in increased daily transportation costs and commute times.
By year’s end, it was clear that this was a significant source of reduced productivity and social tensions, disproportionately impacting low- and middle-income households.
2025 will also be a challenging year for small and medium-sized enterprises (SMEs) and startups working in high-rent areas.
Commercial rent remains one of the most significant costs for businesses, forcing many to relocate, raise prices, cut staff or downsize operations.
For companies looking to tap into urban markets, high rents limit access to key locations, making development and expansion more difficult.
Fortunately, work-from-home policies have been widely adopted in Africa’s corporate sector.
Overcrowding in informal settlements and housing became more pronounced throughout the year, particularly in areas with tight rental markets, and high rents continued to exacerbate inequality.
Families who cannot afford public housing are often forced to live communally or in poor conditions, negatively impacting their health, education and quality of life.
This imbalance has entrenched geographic isolation in some African cities and reduced access to basic services.
African cities need to prioritize housing affordability by building subsidized apartments, promoting affordable rentals, managing commercial rents in high-demand areas, and investing in infrastructure that connects neighborhoods to city centers.
That said, according to Numbeo data, the African cities with the highest rent prices as we head into the end of this year are:
