Lagos Rental Market Stalls at 1.38 Million Households Despite Soaring Population Growth

A new report has revealed that the number of households renting homes in Lagos has remained flat at about 1.38 million since 2016, even as the city’s population and total households have continued to grow.

The State of Lagos Housing Market Vol. 3 shows that while the population expanded from around 21 million in 2016 to nearly 24 million in 2025, the rental market failed to absorb new demand. Over the same period, total households in the state rose from 5.25 million to 6 million, yet the share of households in formal rental arrangements slipped from 83 per cent to 77 per cent.

Analysts attribute the stagnant rental numbers to affordability challenges, with many residents priced out of formal housing. This has forced families into informal settlements, overcrowded apartments, or self-built housing options.

Although housing supply in Lagos increased from 1.42 million units in 2016 to about 2.58 million units in 2025, demand also grew from 4.36 million units to 4.62 million units. This has widened the state’s housing shortfall to roughly 3.4 million units. Of this figure, 620,000 units represent outright shortages, while more than 2.7 million units fall below acceptable living standards.

Experts estimate that Lagos would need to deliver at least 227,000 new housing units every year to keep pace with growth and replace deteriorating stock. Current output falls significantly short of that target.

This report underscores the deepening strain in Lagos’s housing sector, especially as rents have surged more than 100 percent in the past four years, while income levels have remained largely stagnant.e