When the annual carrying cost of a home exceeds thirty percent (30%) of household income, then it is considered unaffordable for that household. Low-income households face difficulties in accessing not only affordable housing solutions but also housing of good quality in Ghana. In Ghana both the informal and formal sector supply of housing continues to be inadequate to meet the increasing demand. Moreover, landlords do not accept monthly payment for rent and tenants have no option than to raise huge sums of money to settle 1-year or more rent advance.

Since 2010, Ghana has been tagged as experiencing a housing deficit of 1.7 million units. However, present trends show that the probable increase in deficit may not be because of an increase in population but due to the inability of citizens to afford houses.

According to iBAN Sector Study Reports in Ghana published in 2016 by GIZ, housing supply is dominated by informal sector operations and housing sold on the formal real estate market is beyond the financial means of most households, with only about 1% of households able to afford the cheapest houses offered by formal developers.

The 99% of the remaining households that can’t afford the cheapest houses offered, end up on the house rental market, creating a demand for an affordable accommodation. According to the same report, about 1.5 Million low-income households need affordable housing solution in Ghana with about 12.4 Million Ghanaians living in slums.