Urban Research Institute Ghana

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1.0 Introduction

Ghana, like many other African nations, faces a persistent and escalating affordable housing deficit, primarily driven by rapid urbanisation (Bondinuba and Stephens, 2018), substantial population growth, and the public sector’s limited capacity to address the increasing demand (Uduokhai et al., 2022). This complex issue is frequently attributed to demographic expansion outpacing housing supply or to the urbanisation of poverty, which renders adequate, serviced housing financially inaccessible to a large segment of the urban population. However, a more comprehensive understanding reveals that historical legacies of elite capture and multi-dimensional exclusions significantly shape policies and practices, thereby impacting who gains access to land, housing finance (Bondinuba et al., 2018), and ultimately, serviced neighbourhoods (Boateng & Klopp, 2024).

The trajectory of Ghana’s housing policies, spanning both pre- and post-independence eras, has been characterised by inconsistency and a lack of sustained impact. Various policy approaches, including self-help initiatives, social housing programs, affordable housing projects, and Public-Private Partnerships (PPPs), have been implemented over time. Despite these efforts, a substantial improvement in housing provision has not been realised (Ameh & Osafo, 2020). The enduring housing crisis, marked by a deficit exceeding two million units, points to a fundamental flaw in the approach, where colonial-era interventions and subsequent neoliberal reforms have collectively contributed to the current challenges (Addo & Mba, 2021).

2.0 Historical Context and Policy Evolution of Housing in Ghana

Ghana’s persistent housing crisis is deeply rooted in historical interventions, particularly colonial policies that favoured piecemeal solutions, a problematic logic that has continued to permeate successive housing policies across the post-colonial period, structural adjustment years, and the present era (Addo & Mba, 2021). Despite numerous government programs aimed at alleviating the housing deficit, this approach has failed to yield significant improvements in housing provision. This historical trajectory reveals a fundamental flaw where initiatives have consistently fallen short of addressing the systemic challenges in the housing sector (Addo & Mba, 2021).

The economic reforms introduced through Structural Adjustment Programs (SAPs) in Ghana between 1983 and 1998 further exacerbated the housing affordability crisis (Konadu Agyemang, 2001). These SAP-inspired policies, particularly currency devaluation and higher interest rates, played a substantial role in the dramatic escalation of land prices in both developed and developing countries. Consequently, real estate became increasingly unattainable for a large segment of the Ghanaian population, pushing housing beyond the reach of low-income households (Konadu Agyemang, 2001). This period marked a significant shift in which economic policies inadvertently undermined efforts to provide affordable housing, contributing to the growing deficit.

Over the years, successive Ghanaian governments have implemented a range of housing policies, encompassing social housing schemes, affordable housing projects, and Public-Private Partnerships (PPPs). However, these diverse policy approaches have consistently failed to deliver a sustained improvement in the housing industry’s performance or to adequately address the housing needs of communities (Ameh & Osafo, 2020). The lack of consistent and sustainable policies has led to ongoing inadequacies in housing provision, with the loan requirements of mortgage institutions, such as high deposit percentages and short repayment terms, proving unbearable for most households (Ameh & Osafo, 2020). This highlights a recurring challenge in which policy intentions do not translate into tangible outcomes for the majority of the population.

3.0 Challenges in Affordable Housing Delivery in Ghana

Despite ongoing initiatives, Ghana continues to grapple with significant challenges in providing affordable housing, particularly for its low- and middle-income populations. A primary impediment is the persistent unaffordability of housing, evidenced by high prices disproportionate to average household incomes (Ameh & Osafo, 2020). This challenge is compounded by stringent loan requirements imposed by mortgage institutions, which typically demand substantial down payment percentages, high monthly mortgage payments, and relatively short repayment terms, thereby making homeownership largely inaccessible to the majority of citizens (Ameh & Osafo, 2020). For instance, studies in cities such as Kumasi indicate that even houses ostensibly designated as ‘affordable’ within government-supported projects remain economically out of reach for a significant portion of the population, highlighting a disconnect between policy intentions and market realities (Okoro et al., 2023).

The involvement of the private sector, crucial for scaling up housing provision, is constrained. Developers navigate a landscape fraught with risks (Teye et al., 2017) that undermine their capacity to deliver affordable housing. These include volatile market dynamics, difficulties in securing and acquiring suitable land, and the spiralling cost of construction materials (Damoah et al., 2020). Furthermore, unsupportive policy frameworks, along with technical and financial limitations, deter private enterprises from investing adequately in this sector (Damoah et al., 2020). Such an environment necessitates significant reforms across the housing value chain to foster greater private sector participation.

Public-Private Partnerships (PPPs), often touted as a viable model for the delivery of affordable housing, also face numerous hurdles in Ghana. These challenges span multiple dimensions, ranging from political instability and governance issues to administrative inefficiencies and resource constraints (Dinye et al., 2025). Constraints on material resources, suboptimal management practices, and various technical difficulties further impede the successful execution of PPP-led affordable housing projects in the country (Dinye et al., 2025). Addressing these systemic issues is crucial for enhancing the effectiveness of such partnerships. Below is a list of key challenges hindering affordable housing delivery in Ghana:

4.0 Framework for Policy, Practice, and Research Implications

To effectively address Ghana’s affordable housing challenge, a multi-faceted framework is essential, encompassing robust policy reforms, practical interventions, and targeted research. Current market dynamics reveal the urgent need for regulatory reforms to enhance transparency in the rental housing sector, including the establishment of a Rental Housing Secretariat and the implementation of standardised contracts (Dok-Yen et al., 2023). Critically, Ghana’s inherent bias toward homeownership in urban policy needs to be challenged by integrating rental housing as a vital and complementary option (Dok-Yen et al., 2023). Furthermore, policy efforts should concentrate on fostering financial innovation, promoting transparency and accountability, and incorporating digital tools for real-time project monitoring in Public-Private Partnerships (PPPs) (Uduokhai et al., 2022). To alleviate the cost burden, the government should explore and implement government-insured mortgages, thereby making housing more affordable for the populace (Okoro et al., 2023).

In terms of practical implications, effective strategies include regulating rental agents to ensure fair practices and transparent transactions in the housing market (Dok-Yen et al., 2023). Incentivising affordable housing development and strengthening tenant protections are also crucial steps to address existing power imbalances and ensure wider access to adequate housing (Dok-Yen et al., 2023). Establishing sustainable housing policies that include comprehensive demand assessments is paramount for aligning housing supply with households’ actual needs (Ameh & Osafo, 2020). Integrating sustainable and frugal innovation in construction practices (Hedidor et al., 2016) offers a viable pathway to reducing costs and increasing affordability. This involves leveraging local materials and adopting energy-efficient designs, ensuring that housing solutions are not only economical but also environmentally sound (Tekpe et al., 2022; Bhanye et al., 2024).

For future research, a clear delineation of sustainable affordable housing strategies into distinct categories would provide a more structured approach to understanding their impact and applicability (Afrane et al., 2025). There is a compelling need to explore innovative financial models (Eyiah and Bondinuba, 2020), tailored for affordable housing and to critically examine how specific PPP models can be optimised to foster inclusive and sustainable housing development across Africa (Uduokhai et al., 2022). Further studies should also evaluate the efficacy of involving beneficiaries in policy development Afrane et al., 2025), as this has been shown to enhance policy relevance and implementation success (Adigeh & Abebe, 2024). Additionally, research should address persistent challenges posed by land acquisition costs and unrealistic building standards in cooperative housing schemes to ensure their long-term viability and affordability (Adigeh & Abebe, 2024).

Table 1: Proposed framework detailing policy, practice, and research implications for affordable housing in Ghana:

Area of Implication Specific Implication
Policy Regulatory reforms for rental market transparency (Secretariat, standardized contracts)
Inclusion of rental housing in urban policy (challenging homeownership bias)
Financial innovation, transparency, accountability, and digital tools for PPPs
Government-insured mortgages to reduce housing supply costs
Practice Regulation of rental agents, incentivizing affordable housing development, strengthening tenant protections
Sustainable policies and demand assessments for housing supply
Integrating sustainable and frugal innovation in construction (local materials, energy-efficient designs)
Research Delineate sustainable affordable housing strategies into distinct categories
Explore innovative financial models for affordable housing
Optimizing specific PPP models for inclusive and sustainable housing development
Evaluate effectiveness of beneficiary involvement and address land acquisition/building standard challenges in cooperative housing

 

5.0 Conclusion

This research has examined the complex interplay between urbanisation and housing policies in shaping the delivery of affordable housing in Ghana. The evidence presented demonstrates that while Ghana has implemented various policy interventions and mechanisms—including public housing initiatives, Public-Private Partnerships (PPPs), and sustainable development frameworks—significant challenges persist in translating these policies into tangible improvements in housing affordability for low- and middle-income populations (Bondinuba et al., 2018; Teye et al., 2017).

The analysis reveals that multiple, interconnected factors across economic, regulatory, and administrative dimensions constrain the delivery of affordable housing in Ghana. High housing prices relative to household incomes, stringent mortgage requirements, land acquisition challenges, and rising construction material costs collectively create barriers that prevent homeownership for the majority of Ghanaians (Ameh & Osafo, 2020; Ofori, 2024). Furthermore, the involvement of the private sector—crucial for scaling housing provision—remains limited due to market uncertainties, policy inconsistencies, and inadequate financial mechanisms (Okoro et al., 2023).

The proposed framework, emphasising policy, practice, and research implications, offers a structured pathway for advancing the delivery of affordable housing. Regulatory reforms to enhance rental market transparency, the integration of rental housing into urban policy, and the adoption of innovative financing mechanisms such as government-insured mortgages represent critical policy directions (Dinye et al., 2025; Uduokhai et al., 2022). At the practice level, the integration of sustainable and frugal construction innovations, coupled with strengthened tenant protections and demand-driven policy development, can help bridge the affordability gap (Dok-Yen et al., 2023; Tekpe et al., 2022). Finally, future research must delineate sustainable housing strategies more clearly and optimise PPP models to ensure inclusive and sustainable housing development across the country (Bhanye et al., 2024).

The findings underscore that addressing Ghana’s affordable housing crisis requires not merely incremental policy adjustments but comprehensive, coordinated efforts among government, private-sector stakeholders, communities, and research institutions. Only through such multisectoral collaboration, supported by evidence-based policy reforms and ongoing research, can Ghana achieve sustainable, affordable housing solutions aligned with the United Nations Sustainable Development Goal 11.

6.0 References

Addo, I. A., & Mba, C. C. (2021). Genealogies of Ghana’s housing crisis: the role of colonial interventions and neoliberal reforms. International Journal of Housing Policy. https://doi.org/10.1080/19491247.2021.1999127

Adigeh, D. T., & Abebe, B. G. (2024). Land acquisition policy and practice for cooperative housing schemes in Bahir Dar, Ethiopia: toward affordable housing solutions. Frontiers in Sustainable Cities. https://doi.org/10.3389/frsc.2023.1234620.

Afrane, E., Jaafar, M. N., Ismail, A., Bondinuba, F. K., Kwakye, B., Boakye-Agyeman, N. A., &     Amankwah, O. (2025). Enhancing affordable public housing policy implementation in Ghana: An empirical analysis of stakeholders’ perspectives. Journal of Construction in Developing Countries, 30(2), 1–23. https://doi.org/10.21315/jcdc.2025.30.2.1

Ameh, S. O., & Osafo, B. T. (2020). Housing Policies: The Experiences and Constraints of the Housing Industry in Ghana. https://doi.org/10.14738/assrj.79.9026

Bhanye, J. I., Lehobo, M. T., Mocwagae, K., & Shayamunda, R. (2024). Strategies for      Sustainable Innovative Affordable Housing (SIAH) for low income families in Africa: A    rapid review study. Discover Sustainability. https://doi.org/10.1007/s43621-024   00353-9

Boateng, F. G., & Klopp, J. M. (2024). Urbanization, Legacies of Elite Capture, and Multi  Dimensional Exclusions in Ghana: Towards Just Housing and Neighborhood Policies in African Cities. Urban Forum. https://doi.org/10.1007/s12132-024-09515-4

Bondinuba, F.K. and Stephens, M., 2018. The influence of urbanisation and housing policies on the delivery of low-income housing in developing countries. Inclusive city growth   and the poor: Policies, challenges and prospects, 16.

Bondinuba, F.K., Opoku, A., Owusu-Manu, D. and Donkor-Hyiaman, K.A., 2018. Stimulating growth and improving the delivery of housing microfinance interventions: An analysis of critical demand factors. Journal of Facilities Management, 16(3), pp.238-252.

Damoah, I. S., Ayakwah, A., Aryee, K. J., & Twum, P. (2020). The rise of PPPs in public sector affordable housing project delivery in Ghana: challenges and policy direction. International Journal of Construction Management. https://doi.org/10.1080/15623599.2020.1763897

Dinye, I., Dinye, R., Ayimaa, R., & Akponzele, R. (2025). Market Dynamics and Institutional Challenges in Urban Rental Housing: Evidence from Kumasi, Ghana. Advances in Research. https://doi.org/10.9734/air/2025/v26i51486

Dok-Yen, D. M., Duah, D. Y. A., & Addy, M. N. (2023). Frugal Innovation: A Game Changer to    Sustainable, Affordable Housing. International Review for Spatial Planning and Sustainable Development. https://doi.org/10.14246/irspsd.11.2_199

Eyiah, A.K. and Bondinuba, F.K., 2020. Financing practices and preferences of small and medium construction firms in Ghana. International Journal of SMEs and Business Sustainability, 5(01), pp.36-60.

Hedidor, D., Bondinuba, F.K. and Sadique, M.A., 2016. Spatial planning in Ghana: Antecedents and the role of local artisans. Journal of Building Construction and Planning Research, 4(3), pp.201-218.

Konadu Agyemang, K. (2001). Structural adjustment programs and housing affordability in Accra, Ghana. Wiley. https://doi.org/https://doi.org/10.1111/j.1541 0064.2001.tb01500.x

Ofori, P. (2024). Mortgage Financing and the Affordable Housing Nexus: Evidence from Developing Countries. International Journal of Real Estate Studies. https://doi.org/10.11113/intrest.v18n1.350

Okoro, C., Olaleye, A., & Owojori, O. (2023). The risks of private-sector investment in affordable housing development: An Afrocentric perspective. Journal of Infrastructure Policy and Development. https://doi.org/10.24294/jipd.v8i1.2691

Tekpe, E., Ansah, S. K., & Akomah, B. (2022). Appropriate Technology and Design: A Solution for Sustainable and Affordable Housing Delivery in Major Cities of Ghana. Journal of Engineering Research and Reports. https://doi.org/10.9734/jerr/2022/v23i8739

Teye, A.L., Haan, J.D., Elsinga, M.G., Bondinuba, F.K. and Gbadegesin, J.T., 2017. Risks in homeownership: a perspective on the Netherlands. International Journal of Housing Markets and Analysis, 10(4), pp.472-488.

Uduokhai, D. O., Nwafor, M. I., Stephen, G.-O. I. D., & Adio, S. A. (2022). Evaluation of Public Private Partnership Frameworks for Effective Affordable Housing Delivery in Africa. Shodhshauryam International Scientific Refereed Research.            https://doi.org/10.32628/shisrrj247132