Rent Is Now Twice the Average Salary: What Happens Next?
BY: Landnest Homes And Properties
BY: Landnest Homes And Properties
Wednesday, September 3, 2025
September 3, 2025
Many Nigerians struggle under the burden of rent. In major cities such as Lagos, Abuja, and Port Harcourt, an increasing number of tenants spend half or more of their yearly income on basic housing, leaving little for food, healthcare, or savings.
According to the State of Lagos Housing Market Report (2025), up to 70 % of household income now fuels rent and related fees (like commission and legal charges) in cities like Lagos. That far exceeds the 30 % affordability threshold recommended globally.
This crisis isn't theoretical, it’s already affecting livelihoods, pushing people into informal settlements, cramped apartments, long commutes, or shared living conditions. Here's what’s driving it forward, and what might help pull it back.
1. Urban Influx and Inadequate Supply
Cities swell while housing lags. Nigeria has over 28 million housing units missing from its deficit, and construction still falls short, fewer than 700,000 homes delivered per year.
As people keep flocking to urban centers in search of work or education, the rental market tightens, and prices rise in places with virtually no inventory buffer.
Tip: Expand your search to suburbs with improving road access to ease rent pressures and commute strains.
Many Nigerians struggle under the burden of rent. In major cities such as Lagos, Abuja, and Port Harcourt, an increasing number of tenants spend half or more of their yearly income on basic housing, leaving little for food, healthcare, or savings.
According to the State of Lagos Housing Market Report (2025), up to 70 % of household income now fuels rent and related fees (like commission and legal charges) in cities like Lagos. That far exceeds the 30 % affordability threshold recommended globally.
This crisis isn't theoretical, it’s already affecting livelihoods, pushing people into informal settlements, cramped apartments, long commutes, or shared living conditions. Here's what’s driving it forward, and what might help pull it back.
1. Urban Influx and Inadequate Supply
Cities swell while housing lags. Nigeria has over 28 million housing units missing from its deficit, and construction still falls short, fewer than 700,000 homes delivered per year.
As people keep flocking to urban centers in search of work or education, the rental market tightens, and prices rise in places with virtually no inventory buffer.
Tip: Expand your search to suburbs with improving road access to ease rent pressures and commute strains.
2. Rent Has Outpaced Income
Data shows rent in Lagos averages ₦2.2 million per year for one-bedroom apartments in areas like Lekki, Ajah, and Ikoyi, while many young professionals earn around ₦1.2 million annually. This means rent can tragically represent nearly or over 200 % of income.
Even outside Lagos, tenants in upper-middle‑class neighborhoods in cities like Ibadan report spending between 50 % and 60 % of income on rent, especially when agent and legal fees are included.
Tip: If rent already exceeds one-third of your income, look for smaller estates, rent-to-own units, or co-living arrangements.
3. Exploitative Practices Push Costs Higher
Middlemen add heavy layers of extra fees, on average 10 % of annual rent or more, for agreements, agency, or caution fees. Lagos law caps these at 10 %, but violations persist.
Fees plus bulk advance rent force many tenants to deliver 1–2 years of rent upfront, exacerbating financial strain.
Tip: Never agree to fees above 10 % of annual rent in Lagos. Demand written contracts and report violators to LASRERA.
2. Rent Has Outpaced Income
Data shows rent in Lagos averages ₦2.2 million per year for one-bedroom apartments in areas like Lekki, Ajah, and Ikoyi, while many young professionals earn around ₦1.2 million annually. This means rent can tragically represent nearly or over 200 % of income.
Even outside Lagos, tenants in upper-middle‑class neighborhoods in cities like Ibadan report spending between 50 % and 60 % of income on rent, especially when agent and legal fees are included.
Tip: If rent already exceeds one-third of your income, look for smaller estates, rent-to-own units, or co-living arrangements.
3. Exploitative Practices Push Costs Higher
Middlemen add heavy layers of extra fees, on average 10 % of annual rent or more, for agreements, agency, or caution fees. Lagos law caps these at 10 %, but violations persist.
Fees plus bulk advance rent force many tenants to deliver 1–2 years of rent upfront, exacerbating financial strain.
Tip: Never agree to fees above 10 % of annual rent in Lagos. Demand written contracts and report violators to LASRERA.
4. Policy Changes Are Unfolding: Slowly
Lagos State introduced a Tenancy Law in 2025 banning more than a one-year advance rent payment and limiting fees, a shift long overdue.
The state also plans a monthly rental payment pilot, starting with public sector tenants, aiming to extend to private renters, all to align payment with income flow and reduce upfront burdens.
These reforms face criticism from some industry voices who say landlords and developers rely on bulk rent for cash flow, making monthly rent unrealistic under current economic models.
5. Economic Pressure Forces Hard Choices
Inflation near 30 %, weak naira, high mortgage rates, and stagnant wages create a survival equation.
Many landlords inflate rents annually to cover maintenance, taxes, and finance costs, while tenants earn the same or less.
Reddit users and local commentators note the shock has become routine: rent doubles even as salaries stagnate.
Tip: Negotiate longer leases or pay slightly in advance to get a discount. Realtors sometimes prefer stable income to flipping tenants.
4. Policy Changes Are Unfolding: Slowly
Lagos State introduced a Tenancy Law in 2025 banning more than a one-year advance rent payment and limiting fees, a shift long overdue.
The state also plans a monthly rental payment pilot, starting with public sector tenants, aiming to extend to private renters, all to align payment with income flow and reduce upfront burdens.
These reforms face criticism from some industry voices who say landlords and developers rely on bulk rent for cash flow, making monthly rent unrealistic under current economic models.
5. Economic Pressure Forces Hard Choices
Inflation near 30 %, weak naira, high mortgage rates, and stagnant wages create a survival equation.
Many landlords inflate rents annually to cover maintenance, taxes, and finance costs, while tenants earn the same or less.
Reddit users and local commentators note the shock has become routine: rent doubles even as salaries stagnate.
Tip: Negotiate longer leases or pay slightly in advance to get a discount. Realtors sometimes prefer stable income to flipping tenants.
What Happens Next?
Short term
Bulk rent burdens remain for most renters
Middlemen fees continue, especially in unregulated cities
State reforms begin in Lagos, but impact remains limited to pilot areas
Longer term
Monthly rent options may expand beyond public service housing
Rent-to-own and co-living solutions gain traction in cities like Ibadan, Kaduna, and Port Harcourt
New laws in Lagos could serve as template for broader rental reform
Housing supply may rebound if subsidies and infrastructure funding hold
What Renters Can Do Right Now
Track spending: Know what percent of your paycheck goes to rent and fees.
Insist on transparency: Demand receipts or tenancy agreements.
Negotiate: Offer to pay quarterly in exchange for a lower rate.
Network: Seek referrals; many affordable rentals never appear online.
Plan long term: Begin saving or investing in land early—it may be more affordable soon.
Broader Needs & The Path Forward
This isn’t a housing issue alone, it’s a socio-economic challenge. Cities must grow more equitably with public policy that:
Matches rent timelines to income
Reduces upfront transaction costs
Accelerates housing construction near transport and amenities
Regulates speculation and encourages affordable housing supply
Nigeria’s youth, professionals, and low-income residents pay the price when housing isn’t managed with foresight.
What Happens Next?
Short term
Bulk rent burdens remain for most renters
Middlemen fees continue, especially in unregulated cities
State reforms begin in Lagos, but impact remains limited to pilot areas
Longer term
Monthly rent options may expand beyond public service housing
Rent-to-own and co-living solutions gain traction in cities like Ibadan, Kaduna, and Port Harcourt
New laws in Lagos could serve as template for broader rental reform
Housing supply may rebound if subsidies and infrastructure funding hold
What Renters Can Do Right Now
Track spending: Know what percent of your paycheck goes to rent and fees.
Insist on transparency: Demand receipts or tenancy agreements.
Negotiate: Offer to pay quarterly in exchange for a lower rate.
Network: Seek referrals; many affordable rentals never appear online.
Plan long term: Begin saving or investing in land early—it may be more affordable soon.
Broader Needs & The Path Forward
This isn’t a housing issue alone, it’s a socio-economic challenge. Cities must grow more equitably with public policy that:
Matches rent timelines to income
Reduces upfront transaction costs
Accelerates housing construction near transport and amenities
Regulates speculation and encourages affordable housing supply
Nigeria’s youth, professionals, and low-income residents pay the price when housing isn’t managed with foresight.
At Landnest, we understand these pressures. Whether you’re renting now or planning to own later, our advice connects data, opportunity, and affordability.
We guide aspiring buyers toward credible opportunities in rising corridors like Ido, Ologuneru, and Moniya.
Send “RENT” via WhatsApp or Instagram to get more information on owning one of our properties in the suburbs of Ibadan..
At Landnest, we understand these pressures. Whether you’re renting now or planning to own later, our advice connects data, opportunity, and affordability.
We guide aspiring buyers toward credible opportunities in rising corridors like Ido, Ologuneru, and Moniya.
Send “RENT” via WhatsApp or Instagram to get more information on owning one of our properties in the suburbs of Ibadan..
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
Registered under EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.