· Birr Metrics
Addis Is Building Homes Nobody Can Afford
Topics:Housing programsMarket
Summary of the Birr Metrics report
Addis Ababa says it built and handed over 496,971 homes in five years. A Birr Metrics column argues that this number does not measure affordability. It points to research that found about 970,000 registered condominium applicants against 344,282 units produced, uneven subsidies, and higher transport costs for residents of sites far from the city centre.
Key points
- The Addis Ababa City Administration reported on October 29 that 496,971 homes were built and handed over in five years.
- A January 2026 Addis Ababa University study found the condominium programme produced 344,282 units, against about 970,000 applicants in the 2013 registry.
- The same study modelled that better subsidy targeting could cut total subsidy needs by about 48 percent.
- A 2024 study of 1,152 condominium residents found heavier cost and access burdens at outer and intermediate sites.
Real.et analysis
Birr Metrics reports that the Addis Ababa City Administration said on October 29 that 496,971 homes were built and handed over in the past five years. More than 4,200 of them came in the first quarter of the current fiscal year. The column accepts the figure as a real achievement. It then argues that a count of homes does not show if residents can afford them. The total covers public programmes, private developers, cooperatives and other builders. It is not a count of subsidised condominiums alone.
What the research says
The column cites a January 2026 study by two Addis Ababa University researchers. The study found that the condominium programme produced 344,282 units, while the updated 2013 registry held about 970,000 applicants. It also found that subsidies favoured larger flats. The researchers' model suggests that better targeting could cut the total subsidy need by about 48 percent. This is a model result. The city has not made this saving.
A 2024 study of 1,152 condominium residents looked at housing and transport costs together. Sites on the outskirts and in intermediate areas put a heavier load on residents than inner-city sites. Lower-income households felt this most.
What this means for buyers
The price of a flat is only one part of the cost. Before you commit to a home, check these points:
- Deposit. How much must you pay at the start, and how long will you need to save it?
- Monthly payment. What share of your household income goes to the loan?
- Location. How far is the site from your work, schools and markets? Add the transport cost and the travel time to your budget.
- Waiting time. A lottery has no fixed date. Do not plan your finances around a draw.
What this means for renters
The column says affordable rental housing gets less attention than condominium handovers. It asks the city to publish median prices, the income needed to buy and the upfront payment with each housing announcement. These are proposals, not policy.
Our condominium guide explains the savings schemes. See the mortgage guide for loan terms, and our guide to the Addis Ababa Housing Development Corporation for how transfers work. For the national target, read about the plan for 1.5 million houses.