Nigerian households are putting major financial commitments — including home purchases and investments — on hold as elevated living costs continue to squeeze disposable income. This is according to the Central Bank of Nigeria’s (CBN) latest Household Expectations Survey for September 2026.
Overall consumer sentiment fell to -18.7 index points in September from -9.9 points in August, reflecting a more pessimistic outlook among households about the economy, family finances and income.
Key Findings from the Survey
Households showed particularly weak intentions toward high-value purchases:
| Category | Sentiment Index (Sept 2026) | Notes |
| House purchases | -68.2 | Weakest major-purchase reading |
| Cars / motor vehicles | -67.3 | Strongly negative |
| Investments | -50.7 | Negative |
| Household appliances & durables | -49.5 | Negative |
| Rent | -32.0 | Still negative |
The Buying Conditions Index for major purchases remained well below the 50-point threshold across all survey horizons. For buildings and landed properties, the buying-condition reading stood at just 14.8 points.
Essentials Take Priority
While major purchases are being deferred, households continue to prioritise essential spending. Food remained the dominant expenditure category, followed by transportation, other household goods, education, and electricity and water.
This defensive shift in spending patterns is consistent with broader cost-of-living pressures. A related CBN survey showed that 77.2% of Nigerian households perceived inflation as high in September, up from 67.2% in August.
Implications for the Property Market
1. Softer near-term demand for home purchases
Negative house-purchase sentiment at -68.2 points indicates that many prospective buyers are postponing decisions. This is likely to affect absorption rates, particularly in higher price bands and for units that require significant upfront equity.
2. Pressure on rental affordability
Even rent recorded a negative outlook (-32.0). Households facing higher food, transport and utility costs have less room to absorb rent increases or move into higher-quality units.
3. Shift toward value and completed stock
In an environment of constrained purchasing power, demand is expected to remain strongest for well-located, reasonably priced, completed units with clear documentation and manageable total occupancy costs.
4. Longer decision cycles
Buyers who remain active are likely to take more time, negotiate harder, and prioritise certainty of delivery and title.
5. Opportunity for realistic pricing and flexible terms
Developers and sellers who align prices with current household capacity and offer structured payment options may still find willing buyers, while those holding out for peak-era pricing may face longer marketing periods.
Broader Context
The CBN findings sit alongside ongoing structural challenges in the housing sector — high construction costs, limited mortgage penetration, and a large housing deficit. While targeted schemes such as MREIF and NHF continue to support some buyers, the broader household survey suggests that many families currently lack the financial headroom for major property commitments.
Final Thoughts
The September 2026 Household Expectations Survey sends a clear signal: living-cost pressures are causing Nigerian households to prioritise essentials and defer home purchases and investments. For the property market, this reinforces the importance of realistic pricing, focus on mid-market and value segments, and careful attention to total cost of occupancy for both buyers and tenants.
Market participants who recognise and adapt to these household realities will be better positioned in the months ahead.
Are you seeing longer decision times or more price sensitivity among buyers and tenants in your market? Share your experience in the comments.
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