Housing crisis cannot be solved solely through construction of buildings—Amegashie-Viglo

Affordable Housing Advocate, Jonathan Amegashie-Viglo, has stated that Ghana’s affordable housing crisis cannot be solved by government solely through the construction of buildings, as this would place a significant strain on public expenditure. Instead, he believes that the government should focus on reducing the cost of housing through strategic interventions in infrastructure, taxation, and economic policies.

Speaking on Business Breakfast on ZED, Amegashie-Viglo noted that estate developers bear the burden of providing essential infrastructure such as roads, electricity meters, and water connections, which adds significantly to the cost of housing. He argued that if the government absorbs these infrastructure costs, the price of homes could be reduced by up to 15%.

“The government cannot build enough houses to solve the problem. What it can do is absorb utility infrastructure costs, which developers currently pay for. This could reduce housing prices by 10 to 15%,” he explained.

Illustrating the impact of such an intervention, he estimated that a $50,000 house could drop to $42,000 if developers were relieved of infrastructure costs.

Amegashie-Viglo also pointed out that high taxation on building materials such as cement, sand, quarry dust, and iron rods further inflates housing prices. He acknowledged the government’s need for tax revenue but suggested that reducing the current 20% tax rate on building materials to 10% could further cut the cost of housing by an additional $5,000, bringing the price of a $50,000 home down to $38,000.

Another major factor driving high housing costs, he said, is currency depreciation and high interest rates on loans. He urged the government to stabilize inflation and encourage the use of locally produced materials, which could reduce price increases from 30% to around 10% annually. This, in turn, could make homes 10% cheaper, lowering the cost of a $37,500 home to $33,750.

Amegashie-Viglo emphasized that making housing affordable requires a holistic approach that includes financial policies, infrastructure support, and lower taxes on construction materials. He urged the government to focus on these measures rather than direct housing construction, which he described as financially unsustainable in the long run. His comments add to the ongoing national debate on how to address Ghana’s growing housing deficit, which continues to make homeownership a challenge for many citizens.