SLIDE 4 7
7SS_NOVVafSPbZR_VNPUNRTRNP_ aURPaVRa
While3urban3populations3have3higher3levels3of3affordability,3these3are3still3 very3low.33Less3than310%3of3households3can3afford3a3mortgage3for3even3the3 cheapest3newly3built3house.3
40000 30000 20000 10000 10000 20000 <$800 $800)$1*600 $1*600)$2*400 $2*400)$3*600 $3*600)$5*000 $5*000)$8*000 $8*000)$14*000 $14*000)$25*000 $25*000)$50*000 >*$50*000
Thousands
Africa*) Annual*Household*Income,*2014*
Rural Urban
2.4*% 5.5*% 4.6*% 5.3*% 4.5*% 5.9*% 4.7*% 2.4*% 1.2*% 0.6*% 14.1*% 15.9*% 8.6*% 7.7 % 4.8*% 4.2*% 2.4*% 0.9*% 0.4*% 0.1*%
Some#mortgage# affordability#but# limited#access
59% 41%
In#most#cases,# subsidies#don’t#bridge# affordability#to#buy#a# new#house.##In#
new#affordability# challenges.
8
7VaURPaSUbVT2@RfN
There3is3a3disconnect3between3the3price3of3formal,3developerFbuilt3housing3and3the3affordability3of3 the3population.3The3vast3majority3of3the3population3across3the3continent3live3in3houses3they3built3 themselves,3with3various3degrees3of3success3and3quality.3Can3developers3&3investors3shift3their3 emphasis3to3meet3the3needs3of3the3majority?
The3cheapest3newly3built3house3built3by3a3private3developer3in3Kenya,32015,3was3 US$17'000.33Even3this3is3only3affordable3to3about310%3of3the3urban3population.33The3 income3required3to3buy3this3house3is3double3the3avg annual3hh income3in3urban3areas.
3000 2500 2000 1500 1000 500 500 1000 <$800 $800)$1*600 $1*600)$2*400 $2*400)$3*600 $3*600)$5*000 $5*000)$8*000 $8*000)$14*000 $14*000)$25*000 $25*000)$50*000 >*$50*000 Thousands Average*Annual*HH income,* urban* 2014 Average*income*needed*for*the*cheapest*newly*built* house*by*a*formal*developer,* 2015 $*4*140 $*8*821
Rural Urban.
Gb_PR2C-GIDD (CanbackGlobal Income Distribution Database www.cgidd.com). Data accessed in August 2015
10%
Income'distribution'and'housing' affordability'in'Kenya
