For most young people in Accra, homeownership has become almost delusional, owing to a persistent increase in house prices, rising cost of living and a decline in purchasing power. The demand for affordable housing has constantly been on the rise due to an increased rate of urbanisation, high unemployment rate, and weakening economy.
Sadly, only a negligible proportion of young professionals enjoy the benefit of staff housing through their employers, leaving the majority grappling with high costs of renting and limited access to affordable housing options. Recent population data paints a revealing picture of housing in Ghana’s urban areas. Only 37.6% of urban dwellers are homeowners, while 46% rely on rented accommodation. The remaining 16.4% consists of those living rent-free – whether perching, squatting, or acting as caretakers. What’s striking is that only a small fraction of homeowners are young adults.
Source: Google Search
For the majority of young Ghanaians, homeownership remains out of reach due to the high cost of housing. As a result, many young adults are staying at home with their parents longer than previous generations, unable to afford their own place. Although affordable housing can take various forms, one approach that holds significant promise, yet remains largely overlooked, is co-living.
What is co-living?
Co-living is an innovative housing model that allows individuals to rent private bedrooms within a shared, fully furnished apartment, while enjoying common spaces like the kitchen, living room, and bathrooms. Each resident holds a separate lease, ensuring flexibility and autonomy. Co-living spaces are typically fully furnished, with professional facilities management overseeing regular cleaning and maintenance of shared areas. These spaces are meticulously managed, and tenants undergo a thorough screening process to maintain a harmonious environment. Additionally, rental agreements often include a refundable security deposit, set aside for potential repairs during the lease term. Co-living communities usually cater to specific groups, such as students or young professionals, fostering social cohesion among like-minded individuals.
Source: Google Search
How does co-living tackle housing affordability for young Ghanaians?
Co-living offers a practical and cost-effective solution to the real estate market’s ongoing affordability challenge in Ghana. By sharing the cost of renting the whole house or apartment, individuals significantly reduce their monthly rent. This allows them to live in desirable locations that might otherwise be out of reach. Aside promoting social cohesion among renters, the arrangement also helps tenants to spread their financial responsibility of renting. For landlords, co-living can be a highly effective way to increase the occupancy of properties by opening up their property to a broader tenant base.
How does co-living promote sustainability?
Beyond housing affordability, co-living is partly an answer to the world looking for sustainable solutions to reduce the carbon footprints of buildings. It is estimated that buildings contribute about 40% of the Green House Gas mission globally. With shared resources like energy, water, and communal spaces, co-living can potentially reduce the environmental footprint of residents.
Source: Google Search
Co-living allows young people to break free from the traditional constraints of renting, offering an alternative path to secure, comfortable, and affordable living. As demand for affordable housing intensifies, co-living could provide a viable and sustainable solution to an increasingly urgent problem.
Explore IMEK Africa’s 2024 Ghana Real Estate Market Report for insights into Ghana’s real estate market.
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