5 African cities where homeownership remains out of reach

Securing home ownership in many African cities remains a challenge due to financial constraints, high property costs, and limited mortgage accessibility. Cities with the lowest mortgage-to-homeownership transition rates face economic instability and reduced social mobility.

High interest rates and tight loan terms make mortgage repayments difficult, leading to increased defaults and foreclosures. This weakens the financial sector and discourages real estate investment.

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In cities like Addis Ababa, rapid development has not translated into increased homeownership. Housing inequality persists as high property costs limit ownership for middle- and lower-income groups, widening the wealth gap and affecting economic growth.

According to data from Numbeo, here are the 5 African cities where homeownership remains out of reach

1. Addis Ababa, Ethiopia – Loan affordability index: 0.1

• Addis Ababa has the lowest transition rate, making home ownership difficult for many residents.
• Economic conditions, limited mortgage financing, and high property prices contribute to the challenge.
• The cost of borrowing remains high, and many potential homeowners struggle to meet mortgage requirements.

2. Alexandria, Egypt – Loan affordability index: 0.3

• Alexandria faces significant hurdles in mortgage accessibility, with a low affordability index.
• High property values compared to income levels make it difficult for residents to transition from renting to home ownership.
• Mortgage terms and financial institution policies often restrict access to long-term home financing.

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3. Nairobi, Kenya – Loan affordability index: 0.4

• Nairobi’s housing sector is evolving, but mortgage accessibility remains limited.
• The gap between income levels and property prices slows down home ownership transitions.
• Many mortgage products require large down payments, making home acquisition unaffordable for a majority of the population.

4. Cairo, Egypt – Loan affordability index: 0.4

• Cairo shares similar mortgage challenges with Alexandria, including high property prices and limited access to affordable loans.
• Many residents struggle to meet the strict eligibility criteria set by banks and financial institutions.
• The cost of housing continues to rise, further limiting the ability of residents to transition from mortgage to home ownership.

Read also: Top 10 African cities with high rent prices in 2025

5. Algiers, Algeria – Loan affordability index: 0.5

• Algiers experiences high property costs, making mortgages difficult to access for many residents.
• Limited mortgage financing options and economic conditions hinder home ownership opportunities.
• The financial burden of mortgage repayment, coupled with fluctuating interest rates, contributes to the low transition rate.