GLOBAL HOUSING CRISIS: A CHALLENGE BEFORE HUMANITY

ESV Dang, Ibrahim Jadah

The growing population of the World coupled with the challenging global economic and political environment has led to an unimaginable global housing crisis, and the Less Developed Countries (LDCs) of the world are most hit by this global crisis.

Globally, demand for housing has outstripped supply, making housing purchase, accommodation and rentals prices to be on an increase curve.  A recent report published by the financial services giant, JP Morgan, reveals that rentals across all home types in Europe have sharply risen by 14.5% in the first quarter of 2023. This rise in rentals is not only in Europe but also in most Less Developed (LDCs), including Nigeria. Scarcity of affordable housing is a growing problem in major Nigerian cities like Abuja, Lagos, Port-Harcourt, Kaduna, Benin-City, Asaba, Warri, Kano and Jos. In these cities, most rentals spend more than half their disposable income on housing costs.

According to the United Nations (UN), an estimated 100 million people globally do not have a home. And most worrisome of this disturbing statistic is the fact that most of these homeless persons are found in Sub-Saharan African countries, with little or no solution insight because of the depressed economic growth of the region.

From available statistics, the World population will continue to grow in a most unimaginable way and the housing crisis is likely to remain. Birth rates are on the increase, both in developed and developing economies of the World. Reports have it that in 1900, the World population was put at less than 2 billion people on earth. Compared to this figure, the World population today is put at 8.05 billion persons. This sharp difference of 6.05 billion from 1900 – 2023 (one hundred and twenty-three years ago), was occasioned by the unprecedented population growth across all regions in the last 12 decades. By 2050, this figure is projected to be approximately 9.7billion people on planet earth.

Key elements in the Sustainable Development Goals (SDGs), as adopted by all United Nations member states in 2015 are aimed at making the World a better place to live and have a decent life. SDG goal number 11, Sustainable Cities and Communities, speaks directly to the housing needs of the global community. In addressing this, the 17 SDGs are all connected in their collective quest to addressing human needs.

On the way forward in addressing the housing crisis that is bedevilling the World, concerted efforts must be made to reduce the crisis to the barest minimum. It is difficult for the housing crisis to be wiped off, but with concerted efforts countries of the World can have their housing crisis reduced.

Strong policies at the global, national and state levels, aimed at addressing the housing crisis should be enacted, adopted, and implemented to the latter. Affordability of the housing space should be a major factor that will drive these policies.

A favourable global, national, and state economic environment is key in driving the housing policies. In Nigeria for example, the macroeconomic environment is too harsh to allow for seamless implementation of government policies.  The inflation rate is too high to allow effective and efficient private sector participation in the various housing programmes. The fluctuating exchange rate is another macroeconomic concern, the importers of building materials do not have a special foreign exchange market to cater for their forex needs.

The spate of insecurity and political instability in most African countries like Nigeria is a challenge before all sectors of the economy including the real estate space.  The government should as a matter of urgency address these concerns that will allow housing and other developments to thrive.

Poverty is huge in the Less Developed Countries (LDCs) of the World where the housing crisis is looming. Multilateral organizations like the World Bank, and the African Development Bank (AfDB) should make these countries as key priorities in the implementation of their many housing programmes and policies.

ESV Dang, Ibrahim Jandah, a Registered Estate Surveyor and Valuer is the General Manager(Property Management), Federal Housing Authority (FHA), he sent in this piece from Abuja.