The growing activities of informal rental agents in the urban housing market of Kumasi, Ghana

Abstract

Rapid urbanization in Ghanaian cities coupled with limited supply of housing units and information gap on the market has made its access a socio-economic concern for many urbanites. To survive competition and gain access to the limited housing units in the market, tenants seek the services of rental agents to facilitate their acquisition processes. This phenomenon has given rise to increasing number of informal rental agents flooding the market. Using a mixed method approach within an overall qualitative design, this paper examines the operational characteristics of the informal rental agents and how they influence access to housing in the city of Kumasi-Ghana, where majority of tenants and landlords use their services. Interviews with the informal rental agents, their clients (tenants and landlords) and officials of the Rent Control Department as well as a survey of rental households in the city suggest that apart from its own growth, unemployment is forcing the youth into the informal rental housing agents' industry. The survey indicated that 54.8% of rental households in Kumasi acquired their housing units through the services of informal rental agents. Besides, it has generated empirical information on the agents' operations and influence in the urban housing market which will guide actors' decisions, particularly tenants and landlords on how to access, contract or work with these agents when seeking a housing unit or using their services. The information gathered will immensely contribute to enhancing the operation of the rental housing market, and its accessibility in the urban environment without destroying the core of its success.