High Cost of Property Push Many Ghanaians to Rent

Real Estate Consultant, Benaiah Uche Rawlings has challenged the notion that renting is a waste of money, arguing that the realities of Ghana’s housing market make home ownership unattainable for many.

Speaking on Business Breakfast on ZED 101.9FM, Mr. Rawlings said the rising cost of homes, particularly in Accra, has made it difficult for the average income earner to transition from renting to owning property.

“I would not say rent is a waste of money. The real question is whether people can afford the homes being sold,” he said.

Mr. Rawlings explained that even in relatively affordable areas such as Oyarifa, Amrahia and Adenta, the price of a standard two bedroom house is not less than 80,000 dollars, equivalent to about 800,000 cedis.

He questioned how many workers are able to save enough to meet such costs, noting that it could take years of disciplined savings for most people to afford a home at current prices.

Beyond the cost of property, he highlighted the strict requirements involved in securing mortgage financing from banks.

According to him, financial institutions typically require a minimum income threshold and assess borrowers based on their ability to repay without exceeding 40 percent of their total income.

“You must have enough income left after your expenses. If your repayment goes beyond that threshold, the bank will not qualify you,” he explained.

Mr. Rawlings noted that these conditions often force potential buyers to settle for lower loan amounts, which limits the type and location of property they can afford.

He added that this creates a mismatch between affordability and convenience, as some buyers may be pushed to consider cheaper homes in distant locations.

“It does not make sense to buy a house in Dodowa for about 500,000 cedis when you work in East Legon or central Accra,” he said.

He stressed that while such options may appear more affordable, the cost and inconvenience of commuting can outweigh the benefits.

Mr. Rawlings therefore maintained that renting remains a practical and sometimes necessary option for many Ghanaians, especially in a market where property prices continue to outpace incomes.