Whenever the housing market is brought up, or a real estate market brief, one topic that commonly arises is the affordability challenges that potential today's homebuyers may face.
With the cost of living increasing and salaries not always keeping up pace, many people find themselves struggling to keep up with the costs of owning a home.
However, as the demand for affordable housing grows, some communities are working on implementing new initiatives and solutions to help make housing more accessible and affordable for everyone.
Despite the challenges, it's essential to keep the conversation going and find ways to make homeownership a realistic and achievable goal for as many people as possible.
To gauge how affordable a home is, three measures are commonly used as they majorly impact affordability: The cost of housing, access to credit, and income inequality. Let's take a closer look at each one to better understand how they are the influencing factors.
When it comes to home purchase or the affordable housing crisis, a variety of factors are at play.
Land value; The cost of land is a key factor in determining how affordable housing can be. If the cost of land is too high, it will put homeownership out of reach for many people.
Construction costs; The cost of constructing a home is another important factor. If construction costs are too high, it may be difficult for builders to offer homes at an affordable price point.
Taxes; Taxes are another factor that can impact the cost of housing. If taxes are too high, it can make it difficult for people to afford homes in certain areas.
All these contribute to the high price tag of homes and apartments in many areas.
Unfortunately, this means that even people with decent incomes can't always afford to live in a decent home. And even when people can afford a certain housing option, they may find themselves stretched too thin with monthly housing costs.
Mortgage housing sector is another major factor affecting home affordability in Kenya. Although there has been an increase in access to finance from banks, other financial institutions and record low mortgage rates it’s still difficult for lower-income individuals to access credit with reasonable terms and conditions, creating affordability challenges for mortgage housing.
This means that even if they can save up enough money, they may not be able to purchase a home due to their inability to secure adequate financing and to even make the mortgage payments.
Besides strong job markets , income inequality is a significant contributor to the lack of affordable housing in Kenya or purchasing power. Low incomes combined with high costs of living make it extremely hard for families who already struggle financially to find affordable homes.
The result is a widening gap between those who are able to access quality housing and those who are left out in the cold – quite literally in some cases! Bottom line is higher wages improve affordability.
The goal is for all citizens of Kenya to not only have access to affordable housing but also to enjoy higher-quality living standards, without home price appreciation. This means looking at how to use resources more efficiently in order to reduce the environmental impact of development projects.
It could also involve exploring new construction techniques that are more energy efficient and require less materials than traditional methods. In addition, greater focus should be placed on urban green spaces, as they provide numerous benefits for local communities.
Ultimately, there is no one-size-fits-all solution. However, with the right combination of innovative ideas and meaningful partnerships between government, private sector, civil society organisations, and communities, it is possible to create a brighter future for all Kenyans.
By prioritising quality of life over profit, we can ensure that all citizens have access to the housing they need for an immediate future.
It is also important to recognize the potential of youth in this process. Young people are often at the forefront of innovation and creativity; by engaging them in conversations about affordable housing and encouraging their involvement in projects, new solutions may be discovered which could benefit everyone involved.
