Hamzat to young workers: Don’t overspend on rent

Lagos State Deputy Governor Obafemi Hamzat has urged young workers struggling with escalating rental costs to explore alternative living arrangements, including residing with parents or relatives, or opting for shared accommodation. This advice comes as a response to concerns about the affordability of housing for young professionals earning modest incomes.

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Don’t let us misunderstand ourselves as a people. We are cultural people. So, if I start work as a young person and I’m not married, a lot of us live with our parents. A lot of us live with our cousins.

Hamzat emphasized that young people should align their housing choices with their current financial capacity, rather than feeling pressured to immediately secure independent apartments or mini-flats. He stated, “Don’t let us misunderstand ourselves as a people. We are cultural people. So, if I start work as a young person and I’m not married, a lot of us live with our parents. A lot of us live with our cousins.” He stressed that starting modestly is acceptable, with the possibility of upgrading accommodation as income grows.

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In fact, if you spend more than 40 per cent of your income on rent, it is too high because you must eat, you must buy clothes, you must do transportation.

The deputy governor further advised residents to cap their rent expenditures at below 40% of their monthly income. He highlighted that this budget allocation must also accommodate essential living costs such as food, clothing, and transportation. “In fact, if you spend more than 40 per cent of your income on rent, it is too high because you must eat, you must buy clothes, you must do transportation,” he asserted.

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We cannot continue to buy houses the way we buy rice and yam.

Looking towards homeownership, Hamzat advocated for mortgage financing as a more viable long-term strategy than the traditional practice of paying the full cost of a house upfront. He suggested that a system where a portion is paid upfront and the remainder is spread over a decade, with monthly payments potentially ranging from ₦25,000 to ₦35,000 depending on income, would make property acquisition more attainable. He also encouraged aspiring homeowners to begin with smaller properties and gradually advance to more substantial homes as their financial standing improves. However, Hamzat acknowledged that addressing the housing crisis requires more than just financing solutions, stressing the critical need for increased incomes and a more stable economy.

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That is the way to go because we know that a lot of people will not be able to afford to pay a one-shot deal.