A year-end assessment shows that housing costs across Africa continue to rise sharply, placing increasing financial pressure on urban residents and reshaping daily life across the continent. As cities expand and demand outpaces supply, rent has become one of the most difficult expenses for families and businesses to manage.
Across many urban centres, households now spend a significant share of their income on accommodation, leading to tighter budgets and reduced spending on essential needs. The strain is also altering where people live and how they commute, as more residents are pushed to distant suburbs in search of affordable options — often resulting in longer travel times and higher transport costs.
The year-end review highlights a group of countries experiencing the most intense rent pressures, including Ethiopia, South Africa, Rwanda, Namibia, Morocco, Tanzania, and Zambia. South Africa appears three times, reflecting multiple cities under severe strain, while Morocco appears twice due to rising costs in more than one urban hub.
Businesses are also grappling with escalating commercial rent. Small and medium enterprises, in particular, are being forced to relocate, scale down, or adjust operations to cope with the rising costs — a trend that disrupts customer access and slows local economic activity.
Urban development specialists say these pressures signal an urgent need for action from governments and city planners. Recommendations include expanding affordable housing initiatives, improving transport links for residents living on the outskirts, and strengthening urban planning to ensure better integration as populations move outward.
As the year comes to a close, housing affordability remains one of Africa’s most pressing urban challenges — one that will continue shaping mobility, economic participation, and quality of life in 2026.
