ISSER calls for reclassification of ‘affordable houses’

The Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana is calling for urgent reclassification of government’s affordable housing initiatives, citing high costs.

The research body said it is important to reclassify current public affordable housing initiatives wherein housing units are priced in excess of GH¢1.14million (equivalent to US$100,000 at current forex market value) – a cost it insisted cannot be described as affordable for middle and low-income earning workers.

However, to effectively address ever-growing demand, combat the prevailing housing deficit crisis and make public housing projects truly affordable for those who need them most, the Director of ISSER, Prof. Peter Quartey, maintained that the current definition of affordable housing has become outdated and fails to reflect the economic realities of today’s society, hence the need to break down the term by reclassifying projects to fit social class specifics.

“We need to, perhaps, redefine the words ‘affordable housing’ because the poor who need these housing units and are on the streets do not get access to them as they are beyond their means. What we have designed so far is for the rich and middle-income brackets,” he said.

He spoke in Accra at the Institute’s Ghana Social Development Outlook (GSDO) 2022 launch, a bi-annual report.

Explaining further, he said: “The affordable housing projects of government need reclassification because the cost of these units is subjective. So, we need to reconsider the term and redesign the housing units to meet the means of the very poor and vulnerable in society”.

Referencing best practices elsewhere, he mentioned that in South Africa, for instance, small housing units are built on the outskirts of town with solar panels that are truly affordable to the poor.

He, therefore, said since the materials cost in Ghana is described as a factor that drives up prices, alternative building materials and methods should be considered.

He emphasised that the increase in number of housing units, as reported by the Ghana Statistical Service (GSS) data, does not mean affordable housing units satisfy every pocket or taste.

“We are seeing more high-earning living income housing units compared to the compound houses that used to be the case. So, in some areas there are housing units that are not being occupied by people because they cannot afford them; East Legon is a classic example.

“There is a need for government to provide affordable housing that is truly affordable to the poor, especially because it is poor and needy people that are on the streets and living in slums or unhygienic conditions,” Prof. Quartey added.

While housing costs have skyrocketed in recent years, wages have remained stagnant, making it increasingly difficult for individuals and families to find affordable places to live. The case of many unoccupied urban buildings is a confirmation that these structures are beyond the purchasing power of even working-class Ghanaians, ISSER noted.

It said housing classified as affordable often falls outside the financial reach of those who need it most. Many hardworking middle-class families are struggling to make ends meet and find themselves excluded from the traditional definition of affordable housing.

It therefore insisted on an updated reclassification that is reflective of the reality on the ground and the present economic landscape.

Among others, the housing chapter in the report recommended that government should implement targeted subsidies or housing assistance programmes to support low-income households in accessing housing options.

The report also advocated addressing supply-side challenges and promoting different housing options for different income groups.