The four biggest reasons rent is so expensive in Accra
Accra is reputed as one of the most expensive cities in Africa. This is partly due to the cost of rent and accommodation that have soared over 70% in the last four years, according to some official statistics.
The effect of this unfortunate situation means that Accra's very young and vibrant population is held back due to the cost of putting a roof over their head.
YEN.com.gh compiles four of the strongest reasons why high rent prices are what they are and will continue to get higher:
1. Demand outweighs supply
As tried and tested economics principles will show, the prices off things are always higher when more people need these things. And if these things are not that many, the cost is bound to drive up.
It is said Ghana has an accommodation deficit of close to 2 million. Many of these people are in Accra but the facilities cannot support them all.
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2. Inflation due to the capital market
For all our struggles, Ghana is increasingly seeing the rise of newly rich young people. These young people have made their monies through fair and foul means.
There is also a rise in the number of banks in the country, with about seven new ones in the last 4 years. This means many banks are putting cash into the system.
The presence of money and people with money make it easy for landlords to increase accommodation prices.
Other landlords who would usually cater for lower income individuals are also forced to increase so as to not be left behind.
3. Regulations are not being enforced
According to the law regulating rents in Ghana, an advancement on an accommodation should not exceed 6 months.
However, it has become the norm over the last 5 years to see landlords charging up to two years from potential tenants.
The authorities are aware of this but no one seems to care enough to work on it.
4. The state's unwillingness to prioritise the issue
Ghanaians are used to politicians promising things but never delivering on it. Rent and housing seem to be something Ghanaian politicians are not willing to put on top of the agenda.
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For some reason, the government is trusting the free-market to handle people's accommodation needs despite the unbearable situation going on.
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Source: YEN.com.gh
