Housing Finance in Liberia


Liberia has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

In May 2017, the National Housing Authority started a construction project to relocate households from a seaside slum, suffering from severe erosion. The NHA, along with partners, has started clearing 12.5 acres of land for the construction of 108 housing units for residents of West Points that were recently affected by the erosion.

The lowest recorded interest rate on a mortgage in Liberia is eight percent, and requires at least a 20 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 20 000. Cement prices are higher than the continental average, at US$ 10 for a 50-kilogram bag.

Iron ore prices are expected to decrease in 2018. This increases the risk of a possible Arcelor Mittal withdrawal from the country. Arcelor Mittal is one of the largest employers and largest private sector investors in Liberia. Pull-out could
substantially hinder Liberia’s growth for the next couple of years.

With an urbanisation rate of 3.20 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Organisations such as Liberia Enterprise Development Finance Company (LEDFC) offer mortgage products. The National Housing Authority (NHA), a state-owned institution, was the only institution providing housing at a large scale. In 2014, the NHA finalised a plan for the construction of 5 000 units worth over US$ 50 million. This project is financed by Shelter Afrique, a member of the African Union for Housing Finance, and included US$ 29.2 million to commercial banks to give long-term loans to eligible Liberians. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Liberia can afford.

Find out more information on the housing finance sector of Liberia, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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