Windhoek: 300 000 homes short, N$76 billion needed
Windhoek’s chronic housing shortage – now estimated at 300 000 units – would require a staggering N$76 billion to resolve. This dire shortfall is also a key driver behind the city’s spiralling rental prices, which averaged over N$7 000 for a two-bedroom unit in 2024.
This is according to Popular Democratic Movement (PDM) parliamentarian Inna Hengari, who this week warned that the cost of renting in the capital is fast outpacing inflation, pushing accommodation further out of reach for ordinary Namibians.
The average monthly rent for a two-bedroom unit in Windhoek climbed to N$7 348 in 2024, a 14.7% increase compared to an annual inflation rate of 5.1%.
Critics argue that property developers and landlords are profiting from the persistent undersupply of housing, with rising demand allowing them to push up prices, while most Namibians remain locked out of both rental and homeownership markets.
According to the 2023 National Housing Policy, just 2.8% of households in Namibia earn more than N$20 000 per month – the typical threshold to qualify for a mortgage on a market-priced house worth N$1.2 million.
At the same time, an overwhelming 88% of households fall within the ultra- and low-income brackets, placing home ownership virtually out of reach.
As a result, most residents are forced into an increasingly unaffordable rental market.
“The demand for rental space in Windhoek has exploded. One-bedroom flats that cost N$2 500 in 2015 now go for N$5 000,” a local property developer told Namibian Sun on condition of anonymity. “As soon as a unit becomes available, I receive more than 10 calls.”
Ripe for exploitation
While the developer cited inflation and increasing municipal rates as the main reasons for escalating rents, he also acknowledged the urgent need for rent control mechanisms – provided landlords are included in consultations.
“We need to protect tenants from being exploited by those offering poor-quality housing at high prices, but the government must strike a balance so landlords aren’t pushed out of business,” he said.
Despite rising public outcry, Namibia lacks effective rental regulation.
In parliament this week, Hengari highlighted the dormant Rent Ordinance 13 of 1977, which empowers rent boards to mediate disputes and regulate rent prices. However, the law has remained shelved for over 30 years.
“Landlords continue to demand deposits equal to one month’s rent, but these funds are not placed in interest-bearing accounts, depriving tenants of their legal entitlement,” Hengari said, referencing Section 25(2) of the ordinance.
Dignity and equity
Hengari submitted five formal questions to urban and rural development minister Sankwasa James Sankwasa, seeking clarity on when rent boards will be reactivated, whether tenant deposits will be regulated, and what concrete steps the ministry plans to take to address the affordability crisis.
Sankwasa acknowledged that a national Rent Control Board remains on the cards but confirmed that it has not been implemented – despite its formal proposal dating back to 2017.
Experts argue that the government’s investment in affordable public housing – currently less than 0.1% of GDP – is insufficient to address the crisis. Coupled with inadequate tenant protections, this has driven a surge in informal settlements. Nearly 67% of Namibia’s urban population now lives in informal housing, according to the housing policy.
“This is not just a housing issue. It’s a question of equity, dignity and long-term urban stability,” Hengari stressed.
This is according to Popular Democratic Movement (PDM) parliamentarian Inna Hengari, who this week warned that the cost of renting in the capital is fast outpacing inflation, pushing accommodation further out of reach for ordinary Namibians.
The average monthly rent for a two-bedroom unit in Windhoek climbed to N$7 348 in 2024, a 14.7% increase compared to an annual inflation rate of 5.1%.
Critics argue that property developers and landlords are profiting from the persistent undersupply of housing, with rising demand allowing them to push up prices, while most Namibians remain locked out of both rental and homeownership markets.
According to the 2023 National Housing Policy, just 2.8% of households in Namibia earn more than N$20 000 per month – the typical threshold to qualify for a mortgage on a market-priced house worth N$1.2 million.
At the same time, an overwhelming 88% of households fall within the ultra- and low-income brackets, placing home ownership virtually out of reach.
As a result, most residents are forced into an increasingly unaffordable rental market.
“The demand for rental space in Windhoek has exploded. One-bedroom flats that cost N$2 500 in 2015 now go for N$5 000,” a local property developer told Namibian Sun on condition of anonymity. “As soon as a unit becomes available, I receive more than 10 calls.”
Ripe for exploitation
While the developer cited inflation and increasing municipal rates as the main reasons for escalating rents, he also acknowledged the urgent need for rent control mechanisms – provided landlords are included in consultations.
“We need to protect tenants from being exploited by those offering poor-quality housing at high prices, but the government must strike a balance so landlords aren’t pushed out of business,” he said.
Despite rising public outcry, Namibia lacks effective rental regulation.
In parliament this week, Hengari highlighted the dormant Rent Ordinance 13 of 1977, which empowers rent boards to mediate disputes and regulate rent prices. However, the law has remained shelved for over 30 years.
“Landlords continue to demand deposits equal to one month’s rent, but these funds are not placed in interest-bearing accounts, depriving tenants of their legal entitlement,” Hengari said, referencing Section 25(2) of the ordinance.
Dignity and equity
Hengari submitted five formal questions to urban and rural development minister Sankwasa James Sankwasa, seeking clarity on when rent boards will be reactivated, whether tenant deposits will be regulated, and what concrete steps the ministry plans to take to address the affordability crisis.
Sankwasa acknowledged that a national Rent Control Board remains on the cards but confirmed that it has not been implemented – despite its formal proposal dating back to 2017.
Experts argue that the government’s investment in affordable public housing – currently less than 0.1% of GDP – is insufficient to address the crisis. Coupled with inadequate tenant protections, this has driven a surge in informal settlements. Nearly 67% of Namibia’s urban population now lives in informal housing, according to the housing policy.
“This is not just a housing issue. It’s a question of equity, dignity and long-term urban stability,” Hengari stressed.
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