Rent is killing us... Hidden struggle of Ghana’s working class

In Ghana today, securing a place to lay one's head has become a battle for survival, particularly for the average worker whose income barely covers the basics. 

Rent, which should be a fundamental right and a manageable cost of living, has evolved into a predatory practice that continues to erode the financial well-being of thousands of Ghanaians year after year.

Take a moment to consider this: the average Ghanaian worker earns less than GHS 6,000.00 per month. And yet, in areas like Christian Village, Kisseman, Klagon and Adjei Kojo, none of which are considered prime locations, a single room is now priced at GH¢1,000.00 monthly.

A modest chamber and hall in Kisseman goes for as much as GH¢1,600.00, with landlords demanding 24 months' rent in advance.

That amounts to GH¢38,400.00, an unthinkable demand for someone whose annual salary is often less than GH¢ 72,000.00 before tax and deductions.

Where is a teacher, a nurse, a young graduate or a junior administrative officer supposed to find such an amount?

The system is broken, and the consequences are dire: young professionals are forced into cramped living arrangements, families are splitting up due to lack of space and others are perpetually in debt from taking loans just to secure a roof over their heads.

Root

The problem is not just greedy landlords; it is also the failure of regulatory institutions like the Rent Control Department to enforce existing laws or introduce progressive reforms.

The Rent Act of 1963 (Act 220), which governs the regulation of rental agreements, is outdated and largely ignored.

Landlords blatantly flout the law, demanding 1-2 years’ rent upfront when, by law, only 6 months’ advance is permitted.

The lack of enforcement, coupled with a severe housing deficit (estimated at over 1.8 million units), has created the perfect storm for exploitation.

And as urban migration increases and demand for housing rises, landlords wield unchecked power over desperate tenants.

To address this housing crisis, Ghana must take cues from global best models:

• Rent Control Enforcement (Germany): In Germany, rent increases are regulated and must be justified.

Rent control offices actively mediate disputes and protect tenants from exploitative hikes.

• Monthly Rent System (United States, Canada, UK): In most developed countries, rent is paid monthly, not in bulk upfront.

Security deposits are standardised (often equivalent to one or two months' rent), and tenants can take landlords to court for illegal demands.

• Public Housing (Singapore): Singapore’s government plays a direct role in building affordable housing for citizens.

A significant percentage of Singaporeans live in well-planned, subsidised apartments managed by the state.

• Rent Guarantee Schemes (UK): Local authorities provide rent guarantee schemes to encourage landlords to rent to lower-income tenants while assuring landlords of steady payments.

• Revise and enforce rent laws: Parliament must update the Rent Act to reflect current economic realities.

Rent Control officers must be empowered to conduct inspections and penalise non-compliant landlords.

• Digitise rental oversight: A national rental portal, managed by Rent Control, could standardise pricing, track landlord behaviour and offer dispute resolution services.

• Cap advance payments: Enforce a strict 6-month rent advance cap with serious penalties for violators.

• Rent-to-own options: Create flexible payment schemes that allow tenants to eventually own the homes they rent.

• Incentivise landlords: Offer tax incentives for landlords who comply with fair rent practices and make their properties available to lower-income tenants.

The housing struggle in Ghana is not just an inconvenience. It is a human dignity crisis.

As rents soar and salaries stagnate, the working class is being suffocated by a system that has lost all sense of fairness. 

It is time for the Rent Control Department to wake up from its slumber and for policymakers to listen to the cries of ordinary Ghanaians.

Shelter should not be a luxury.

It is a right, and the time to act is now.

The writer is a Financial Economist|Research & Policy Analyst.

E-mail: numosuorephraim@gmail.com