5 major African cities that offer the worst transition rates from mortgage to home ownership

The transition rate from mortgage to homeownership is an important indicator of financial access in African cities.

Business Insider Africa presents the top 5 African cities that offer the worst transition rates from mortgage to home ownership.
This list is courtesy of data from Numbeo.
Addis Ababa ranks number 1 on the list.

Cities with the worst transition rates suffer major disadvantages that impede economic stability and social mobility.

High interest rates, tight loan terms, and economic insecurity frequently contribute to borrowers’ inability to meet repayment obligations.

In such locations, mortgage loads remain high compared to income levels, creating a cycle in which people are inertly indebted.

This lack of financial mobility discourages home investments, leading to increased reliance on rental housing and stagnation in wealth accumulation.

Unaffordable mortgage payments cause greater rates of loan defaults and foreclosures in certain cities.

This undermines the financial sector, making banks less likely to grant house loans, exacerbating the housing crisis.

Furthermore, cities with low mortgage-to-homeownership transition rates struggle to attract investment in the real estate industry.

Addis Ababa has become a bustling, fast-changing city where modern buildings have shot up, construction is ever-present and greenery scarce

Developers and investors are unwilling to support housing developments in locations where homeownership is still elusive, resulting in stagnant urban growth and a continuous housing shortfall.

Housing inequality is a major issue since high property costs relative to income prevent middle- and lower-income people from owning property.

This expands the wealth gap and exacerbates social inequality, impeding overall economic growth.

With that said, here are the 10 African countries with the highest loan affordability index, according to data from Numbeo.

PS: Numbeo’s data covers only major economic hubs in Africa.