Securing home ownership in many African cities remains a challenge due to financial constraints, high property costs, and limited mortgage accessibility. Cities with the lowest mortgage-to-homeownership transition rates face economic instability and reduced social mobility.

High interest rates and tight loan terms make mortgage repayments difficult, leading to increased defaults and foreclosures. This weakens the financial sector and discourages real estate investment.

In cities like Addis Ababa, rapid development has not translated into increased homeownership. Housing inequality persists as high property costs limit ownership for middle- and lower-income groups, widening the wealth gap and affecting economic growth.

1. Addis Ababa, Ethiopia – Loan affordability index: 0.1

2. Alexandria, Egypt – Loan affordability index: 0.3

3. Nairobi, Kenya – Loan affordability index: 0.4

4. Cairo, Egypt – Loan affordability index: 0.4

5. Algiers, Algeria – Loan affordability index: 0.5