This archive report was first published on 30 October 2019.
October 30, 2019, marked a significant shift in the housing market in Nairobi as residents began to migrate to the suburbs in search of affordable housing. The rising cost of living, coupled with job losses across various sectors, has led to a surge in asking rents in the city, making it increasingly difficult for tenants to afford homes in city estates.
According to HassConsult, a realtor, asking rents in Nairobi have nearly tripled since 2007, pushing many residents to seek alternative housing options in satellite towns like Ngong, Kitengela, Rongai, Ruai, and Ruiru. While these areas have also experienced rising rents due to an influx of new customers, they remain more affordable compared to city estates.
As the cost of living continues to soar, many residents are willing to dig deeper into their pockets for transport and spend more time in longer commutes to secure cheaper homes. HassConsult's head of development, consulting, and research, Sakina Hassanali, noted that the lower middle class is opting to pay slightly more in transport but less in rents.
The report by HassConsult highlights the significant growth in rents in various areas, with apartments in Thika recording the highest annual growth at 13.3 percent and Tigoni experiencing the highest quarterly rate increase at 3.5 percent. Kenya's housing deficit is estimated at two million units, with current production adding only around 50,000 units per year.
Experts recommend that the government provide incentives to developers to create affordable housing, as stipulated in the Constitution of Kenya and the National Development Plan, Vision 2030 Strategy. The strategy aims to provide 200,000 housing units annually for all income levels, but the current production rate is well below this target.
