Solving Namibia’s housing crisis requires economic empowerment, not more houses
OPINION | A bold promise from the new administration
The current and new administration’s ambition to construct 55 000 houses within the next five years is a commendable and hopeful initiative. However, while this goal demonstrates political will, Namibia’s housing crisis is a far deeper issue that cannot be solved solely by building more houses.
According to the National Housing Enterprise (NHE), Namibia currently faces a housing backlog of approximately 300 000 units. To meet this demand, the country would require an estimated N$76 billion – an amount nearly equivalent to the 2025/2026 national budget of N$89.4 billion. This stark comparison underscores the need for a more sustainable and realistic approach.
The real challenge: Affordability, not availability
As a town and regional planner who has worked in both the private and public sectors – on projects such as Ongos and other peri-urban housing initiatives – I have observed that Namibia’s housing issue is not about land scarcity or a shortage of houses, but rather the lack of financial capacity among citizens.
With unemployment currently estimated at 38% of the national population of 3.03 million, more than a million Namibians are jobless. Even among the employed, many earn wages too low to qualify for home loans or to sustain home ownership costs.
In northern Namibia, for example, a locally developed three-bedroom house costs around N$750 000, including an N$80 000 plot and an estimated N$150 000 developer’s profit. While this price is relatively fair, sales remain low – simply because the majority of people cannot afford it.
Why previous mass housing projects failed
Past initiatives such as the Mass Housing Programme were well-intentioned but largely ineffective. These projects failed not because of poor design or lack of demand, but due to inflated construction costs and profit margins added by developers, which ultimately made the houses unaffordable to ordinary citizens.
The very purpose of mass housing – to provide affordable shelter – was defeated when the end-user had to bear the added costs. This experience should guide us toward a more realistic understanding of housing affordability and sustainability.
Rethinking the housing strategy
A sustainable housing solution requires a shift in national strategy. Instead of focusing primarily on government-led construction, Namibia should prioritise economic empowerment and access to serviced land.
When people have secure land tenure and title deeds, they gain both stability and the ability to build their homes incrementally, as their financial situation improves. This approach encourages local investment, job creation and gradual urban development – without overwhelming the national budget.
The financial burden of 'affordable' housing
Building houses for citizens who lack stable income may appear generous, but it often creates unintended consequences. Without financial security, homeowners struggle to pay municipal rates, cover maintenance costs or service mortgages.
In such cases, what was meant to be a solution becomes a long-term burden. The true measure of success is not how many houses government builds, but how many citizens can sustainably own and maintain their homes.
The way forward: Economic growth and land ownership
The path to solving Namibia’s housing backlog lies in strengthening the economy and empowering citizens financially. Once people are gainfully employed and earning decent incomes, they will naturally begin to invest in their own homes.
What the people need most is serviced land with ownership rights, not government-constructed houses they cannot afford to maintain. A thriving economy will, in turn, drive a thriving housing market – where every Namibian has the dignity of building their own home, one brick at a time.
*Wilhelm Shepya is a town planning officer and MBA candidate in management strategies at the University of Namibia.
According to the National Housing Enterprise (NHE), Namibia currently faces a housing backlog of approximately 300 000 units. To meet this demand, the country would require an estimated N$76 billion – an amount nearly equivalent to the 2025/2026 national budget of N$89.4 billion. This stark comparison underscores the need for a more sustainable and realistic approach.
The real challenge: Affordability, not availability
As a town and regional planner who has worked in both the private and public sectors – on projects such as Ongos and other peri-urban housing initiatives – I have observed that Namibia’s housing issue is not about land scarcity or a shortage of houses, but rather the lack of financial capacity among citizens.
With unemployment currently estimated at 38% of the national population of 3.03 million, more than a million Namibians are jobless. Even among the employed, many earn wages too low to qualify for home loans or to sustain home ownership costs.
In northern Namibia, for example, a locally developed three-bedroom house costs around N$750 000, including an N$80 000 plot and an estimated N$150 000 developer’s profit. While this price is relatively fair, sales remain low – simply because the majority of people cannot afford it.
Why previous mass housing projects failed
Past initiatives such as the Mass Housing Programme were well-intentioned but largely ineffective. These projects failed not because of poor design or lack of demand, but due to inflated construction costs and profit margins added by developers, which ultimately made the houses unaffordable to ordinary citizens.
The very purpose of mass housing – to provide affordable shelter – was defeated when the end-user had to bear the added costs. This experience should guide us toward a more realistic understanding of housing affordability and sustainability.
Rethinking the housing strategy
A sustainable housing solution requires a shift in national strategy. Instead of focusing primarily on government-led construction, Namibia should prioritise economic empowerment and access to serviced land.
When people have secure land tenure and title deeds, they gain both stability and the ability to build their homes incrementally, as their financial situation improves. This approach encourages local investment, job creation and gradual urban development – without overwhelming the national budget.
The financial burden of 'affordable' housing
Building houses for citizens who lack stable income may appear generous, but it often creates unintended consequences. Without financial security, homeowners struggle to pay municipal rates, cover maintenance costs or service mortgages.
In such cases, what was meant to be a solution becomes a long-term burden. The true measure of success is not how many houses government builds, but how many citizens can sustainably own and maintain their homes.
The way forward: Economic growth and land ownership
The path to solving Namibia’s housing backlog lies in strengthening the economy and empowering citizens financially. Once people are gainfully employed and earning decent incomes, they will naturally begin to invest in their own homes.
What the people need most is serviced land with ownership rights, not government-constructed houses they cannot afford to maintain. A thriving economy will, in turn, drive a thriving housing market – where every Namibian has the dignity of building their own home, one brick at a time.
*Wilhelm Shepya is a town planning officer and MBA candidate in management strategies at the University of Namibia.
Comments
Namibian Sun
No comments have been left on this article