Housing Problem in Ghana is More of Demand Issue Than Supply — NHF Boss

The Chief Executive Officer of the National Homeownership Fund, Dela P. Zumanu, has questioned the country's approach to solving the housing menace and says the problem is more of a demand issue than supply in the market.

He said there is always a miscommunication between the demand side and supply side of the housing market and that always results in high cost of homes which mostly fall out of home buyers' budgets and demands.

“The key problem of bridging the housing deficit is the communication between the demand side and the supply side of the market,” Mr. Zumanu said.

Speaking at the SDG Investor Map Breakfast Meeting, organized by the Ghana Investment Promotion Center (GIPC), Dela Zumanu speaks to the problem of bridging the housing deficit and recommends that housing should be looked at from the demand side and not the supply.

He said adequate financial avenues for owning homes need to be created because very few banks in the country have mortgage products and these mortgages come at high-interest rates which deter home buyers' interest in accessing homes.

He said, “when the demand does not speak to the supply we may be supplying some homes which may not be meeting the needs and demands of the people.”

Housing has become the subject of discussion because of the escalating housing deficit the country has faced over the years. The housing deficit currently stands at over 1.8million housing units, with more than one million vacant housing units across the country. 

Dela Zumanu however believes that this is the time to focus all efforts on the demand side of the market since there are all indications showing people desire to own homes but with reasonable mortgage interest rates. 

He stated that the efforts by the previous government had failed with the supply approach because newly built homes were not responding to the basic indicators that show a thriving housing market and that contribute to many vacant housing units in the country. 

The National Homeownership Fund (NHF) was established earlier this year to stimulate and expand homeownership opportunities and strengthen communities nationwide.

The homeownership scheme is expected to initiate programs to subsidize the acquisition of land in some selected areas of the country and also provide mortgages to address the housing deficit in the country.

It's worth noting that the government of Ghana is committed to bridging the housing deficit by implementing several housing programs including the recent partnership with the Ghana Real Estate Developers Association to construct 20,000 affordable housing units across the country.