Dangote Refinery's Pricing Transparency Dispute Intensifies
Dangote Refinery's pricing transparency dispute with Nigerian energy sector players escalates, hindering petrol sales to independent marketers.
Taylor Brooks
In many African cities, residents are increasingly concerned about affordability, particularly as the disparity between income levels and living expenditures grows. According to Numbeo's price-to-income ratio data, five major African cities stand out as having the least affordable housing in 2025, with Addis Ababa, Ethiopia, ranking number one on the list.
The Price-to-Income Ratio (PIR), a significant economic indicator, assesses the relationship between average income and real estate prices. A high PIR suggests that housing is becoming increasingly costly to income, putting inhabitants under substantial financial difficulty. Cities in Africa with a high PIR have severe issues, as a large percentage of the population may not be able to afford to own or rent a property.
The consequences of unaffordable housing are far-reaching. Many people are forced into cramped or inadequate living circumstances, particularly in urban centers bustling with opportunities but unable to service everyone. This leads to long-term financial instability and an increase in the number of homeless people. Furthermore, costly housing reduces the amount of money that families can spend on other necessities like transportation, healthcare, and education, ultimately hurting local economies.
High housing expenses also exacerbate socioeconomic disparities, expanding the gap between rich and low-income people. In places where affordability is a big concern, middle- and low-income families are frequently driven to the periphery, resulting in long commutes, limited employment possibilities, and a worse quality of life. Simultaneously, a dearth of affordable housing in big African cities can hinder urban growth by discouraging talent retention and innovation.
The top 5 African cities with the least affordable housing, according to Numbeo's data, are Addis Ababa, Ethiopia (52.9 PIR), Algiers, Algeria (23.7 PIR), Alexandria, Egypt (21.5 PIR), Nairobi, Kenya (17.5 PIR), and Cairo, Egypt (17.4 PIR). These cities are major economic hubs in Africa, and the lack of affordable housing poses significant challenges for residents and policymakers alike.
The findings highlight the need for sustainable urban planning and housing policies that address the growing affordability crisis in African cities. As the continent continues to urbanize, it is essential to prioritize affordable housing options to ensure that residents can access decent living conditions, and cities can foster inclusive growth and development.
For more insights into the state of housing affordability in Africa, read the full report from Numbeo, which provides a comprehensive analysis of the price-to-income ratio across major African cities.
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