New reports published by PAC Research have recommended the adoption of incremental housing models, deeper housing finance penetration and stronger public-private partnerships (PPPs) to address Nigeria’s housing deficit.

The research publications, titled From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market and Lagos Housing Report: A Treasure Trove of Possibilities, noted that despite the scale of the housing challenge, the sector presents major investment opportunities valued in trillions of naira.

According to the reports, Nigeria’s huge housing shortage offers attractive opportunities for both local and foreign investors. The publications estimated that Nigeria requires about 800,000 new homes annually to meet population growth and rising housing demand, with the figure projected to triple by 2030.

In the foreword to the reports, Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, said the annual housing demand could rise to two million units by the end of the decade.

The reports also highlighted Nigeria’s low mortgage penetration, currently below one per cent of Gross Domestic Product (GDP), compared to 77 per cent in the United States and 31 per cent in South Africa.

According to the publications, Nigeria is at a critical stage where rapid urbanisation and economic transformation are creating unprecedented opportunities within the housing sector.

The reports identified innovative financing mechanisms capable of bridging the housing gap, including Real Estate Investment Trusts (REITs), diaspora mortgage products and the Federal Government’s Renewed Hope Housing Scheme.

They further revealed that Lagos currently has an estimated housing stock of 1.49 million units, while demand stands at about 4.69 million units, leaving an accessible market gap of roughly 2.81 million units.

Among the key findings was the growing preference for smaller housing units, with over 52 per cent of residents favouring one- and two-bedroom apartments, reflecting increasing demand for affordable and compact living spaces.

The reports also identified strong rental yields in prime locations such as Lekki and Victoria Island, where three-bedroom apartments in Victoria Island can attract annual rents of up to N8 million.

Osidi described the reports as a call to action for stakeholders across the housing value chain. “This report is more than an analysis; it is a call to action. The time to invest in Nigeria’s housing market is now. The rewards extend beyond financial returns to include inclusive growth and urban resilience,” he said.

Also speaking, the Oniru of Iruland, Abdulwasiu Lawal, who is also a former Lagos State Commissioner for Housing, described the Lagos housing report as an essential guide for stakeholders in the real estate sector.

He said the report maintained strong research standards and identified emerging investment corridors such as Ajah and Epe, alongside Lekki, as the next frontiers for real estate development in Lagos.