As inflation bites harder, the areas that were once affordable are now getting out of reach of many low-income renters who are forced to the hinterlands or outskirts of major cities, CHINEDUM UWAEGBULAM reports.

With landlords and letting agencies increasingly raising rents for both new and existing tenants in urban centres due to inflation; thousands of low-income renters are being pushed out to the suburbs in major cities.

The surge in the rental levels of the properties has persisted in the city centres, causing major areas that were once within reach for low-income earners to become the delight of middle-income groups while shrinking the pool of affordable homes.

While rising rents are largely a byproduct of limited supply and high demand across the rental market, high inflation due to the poor economy, unfriendly policy and inadequate employment have stifled productivity, as well as eroding the earning power of most Nigerians.

Though the exodus to the suburbs can be attributed to houses in city centres being unaffordable for many low-income individuals and families, some renters want quality of life, as suburbs often offer more spacious living conditions and less congestion, which can be appealing to families seeking a better quality of life away from the hustle and bustle of the city.

In the Lagos area, for instance, the locations in the suburbs serve as options for several factors, such as the location of the workplace. Those working in Lagos Island and Victoria Island may opt for locations like Surulere, Gbagada, Isolo, Yaba, Ikorodu, Ketu, Bariga, and Mowe. Then, those who work in Lekki and its environs may opt for Lakowe, Awoyaya, Ikota, Victoria Garden City (VGC), and Epe, depending on the robustness of cash flow.

The Guardian learnt that rent in these locations appears to be relatively cheaper. The rents within the suburbs are usually below the rental value in the urban centres, for instance, a two-bedroom apartment in the suburbs is going for N250,000 as rent, similar two-bedroom apartment in the urban centre may likely go for between N1,000,000 to N1,500,000.

Also, a three-bedroom flat with one-room boys’ quarter in a good location in Lekki phase 1 goes as high as #10m – #15m p.a. The same in Ikoyi, depending on the estate, and it could be as high as #25m pa to #40m pa. The rents for properties in the suburbs will be around #1.5m pa to about #4m pa.

Similarly, within the city of Port Harcourt, low-income earners are moving to Igbo-Etche, Oyigbo, Iriebe, Eneka, Igwuruta, Omagwa, Choba, and Eleme. The rent of a two-bedroom flat in the above suburbs is in the region of N400,000 to N500,000, while in the city centre, it is in the region of N1,000,000 to N2,500,000 depending on the location.

The former Chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Faculty of Estate Agency and Marketing, Sam Eboigbe, told The Guardian that the escalating rental values in residential and commercial property segments are making tenants relocate from city centres to affordable locations regardless of distance.

“Accessibility used to be a major factor in determining the choice of location, but the concept has shifted to affordability, and the suburbs have seamlessly provided relief, respite, and options,” he said.

According to him, low-income earners are faced with extremely low purchasing power, which has grossly been eroded completely by the huge inflation ravaging every sector. “They are faced with the enormous challenges of apportioning their earnings on payment of house rent, school fees, feeding, transportation, energy, security, and medical bills.

They feel neglected and abandoned as the policies of the government have no beneficial effects on the low-income brackets.

“The cost of commuting as per transportation should also be considered. For those driving, we will need to contend with the purchase of fuel. Those entering public transportation will similarly need to contend with excessive charges for buses and taxes. At the end of the day, it may not be worthwhile relocating too far away from your workplace.”

To ameliorate the plight of the low-income earners, Eboigbe urged the government to fix the economy. “When the prices of goods and services are affordable, it reduces inflation to the barest minimum, and then anybody can live anywhere.

“In Lagos, the state government should be appreciated for attempting to improve rail services and water transportation. When the pressure on our roads is minimised and people have options to commute by affordable railway transportation, ferries on water waterways, then people will have the option to reside anywhere.”

To curb inflation, Eboigbe, a fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) called for policymakers’ interventions to discourage low-income earners from migrating from the city centres. Among his suggestions is the reduction in the pump price of petrol and restoration of the naira value in the foreign exchange market.

The Chairman of NIESV Bauchi State branch, Jambil Suyudi, explained that though some suburbs have little social amenities such as good road networks, pipe-borne water, and electricity supply, their proximity to the tenant’s places of work is not a problem.

“There are economic gains to staying in the suburbs, however in terms of commuting daily to the city centre, with the types of transportation system in the country, a lot of useful and productive man hours are wasted. Notwithstanding, if you compare with the cost of rents in the urban centres, there is still a great economic savings.”

He blamed the problem on the lack of appropriate housing policies and provisions by the government and individuals, the high cost of building materials, and low remuneration for employees commensurate with the daily living expenses including accommodation, transportation, feeding and corruption.

Suyudi advocated the creation of policies and programmes in the provision of affordable housing accommodation, the provision of more infrastructural facilities to accommodate the teeming populace and the creation of more urban areas.

The Chairman of NIESV Anambra State branch, Mr Raji Adewale, said the rise of remote working, exacerbated by the COVID-19 pandemic, has allowed individuals to reconsider their living spaces, enabling them to make longer commutes to work without the need for proximity to their workplace.

According to him, improved transportation links and infrastructure development in suburban areas have made commuting more feasible and encouraged low-income earners to relocate.

He said: “Rents in the suburbs tend to be significantly lower than those in city centres. In many cases, suburban rents can be as much as 30-50 per cent cheaper than their city counterparts.

“For low-income earners, the decision to commute to urban centres often makes economic sense as the reduced rent enables households to allocate their budgets to other necessary expenses like food, education, and healthcare.

“Although commuting incurs transportation costs, they typically remain lower than the cost differential of living in the city. Efficient public transport systems can facilitate this balance, offering reasonable and predictable commute times.

However, this decision is contingent on the availability and reliability of transport options, as longer commutes can erode the economic advantages of suburban living.”

Adewale said while suburbs may offer advantages, several challenges still affect low-income earners seeking housing in these areas: One, infrastructure deficiencies: In some instances, suburban regions may lack adequate infrastructure, such as roads, healthcare facilities, and schools, which can hinder the overall living experience.

Two, Limited housing availability: Despite lower costs, the supply of affordable housing may remain constrained, with many developments catering to wealthier demographics.

Three, Social stigmas: There can be a perceived stigma associated with living in certain suburbs, sometimes resulting in a lack of community cohesion or increased crime rates.

He stated that inadequate public transport may limit access to jobs and services, increasing dependency on personal vehicles, which may not be economically feasible for low-income earners, while inadequate public transport may limit access to jobs and services, increasing dependency on personal vehicles which may not be economically feasible for low-income earners.

To address the challenges, Adewale urged the government to subsidise housing programmes, specifically aimed at low-income earners or incentivise developers to build affordable housing in prime urban areas.

He called for the introduction of Public-Private Partnerships (PPP), by partnering with private developers in the construction of mixed-income housing that ensures availability at various price points while maintaining quality.

Besides, Adewale, who doubles as the Managing Partner of Raji Adewale & Associates stated that streamlining the regulatory framework surrounding property development can help increase the supply of affordable housing without compromising on quality.

He said fostering community engagement and investing in urban renewal projects can enhance living conditions, making city-centre living more appealing for low-income earners.

“Through these initiatives, the government can work towards fostering an inclusive urban environment where low-income earners can thrive within city centres,” he added.

The Chairman of the NIESV Rivers State branch, Nwokoma Nwankwo told The Guardian that the low-income earners have never lived in the Central Business Districts in Nigeria paying rent by themselves, except the people living in government/company quarters or service quarters of the high-income earners. “They move more to further suburbs from the closer neighbourhoods of the city centres as a result of the extremely high cost of living.”

For the low-income rents, he said it makes economic sense to commute daily to city centres as it doesn’t only save the low-income earners from paying high rent, but foodstuff and other commodities are cheaper around the suburbs.

He added that the situation would have been better if there was a good transportation system provided by the government

“Low-income earners are consistently under pressure to meet the basic needs of life. Most of them do not pay their rent as and when due. They need to feed, clothe and pay school fees amongst other pressing daily needs. To make savings for rent payments and renewals is quite challenging,” Nwankwo said.