Ghana’s strengthening cedi has sparked cautious optimism in the economy, but for ordinary Ghanaians, the impact on housing affordability remains minimal. Despite the currency’s appreciation, the dream of homeownership is still slipping further away for many families.

The Ghanaian cedi has strengthened in recent months, yet housing costs remain high. With mortgage rates near 30% and construction material prices still elevated, many citizens struggle to make homeownership a reality.

Mortgage Burden Still Heavy

Mortgage rates in Ghana remain among the highest in Africa, hovering around 30%. For middle-income and low-income earners, accessing home loans is nearly impossible, as repayment plans often swallow more than half of household incomes. The result is that mortgage financing, which is meant to be a pathway to homeownership, continues to serve only a very small fraction of the population.

Building Costs Refuse to Fall

While the stronger cedi should ideally ease the cost of imported goods, building materials such as cement, iron rods, tiles, and fittings remain stubbornly expensive. Industry observers say legacy import contracts, limited local production, and speculative pricing mean that savings are not being passed on to the consumer. Land prices, particularly in Accra and Kumasi, have also surged, further driving housing costs out of reach.

Ghana’s Housing Deficit Growing

The country’s housing deficit now stands at over 1.8 million units, a gap that continues to widen as rural-urban migration increases. Accra, Kumasi, and Takoradi are under particular strain, with demand far outpacing the supply of decent, affordable housing. This has fueled the expansion of informal settlements, where basic infrastructure and amenities are lacking.

Calls for Urgent Solutions

Industry experts and housing advocates are calling for bold interventions, including:

• Local Production: Expanding domestic manufacturing of cement, steel, and finishing products to cut down import reliance.
• Affordable Financing: Designing low-interest, flexible mortgage schemes that are realistic for middle- and low-income families.
• Public-Private Partnerships: Encouraging joint ventures that deliver affordable housing at scale.
• Land Use Reform: Introducing policies to curb speculative land pricing and streamline acquisition.

Looking Ahead

Until systemic reforms are put in place, the strengthening cedi may continue to look good on paper but will do little to improve the reality for millions of Ghanaians in search of affordable housing. The challenge is no longer just about building more homes, it’s about creating a system where ordinary citizens can access them at fair prices.

At Housing in Ghana magazine, we’re committed to providing you with the knowledge and resources you need to succeed in Ghana’s real estate market. Stay tuned for more expert insights, tips, and advice to help you navigate your real estate journey with confidence.

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