Govt focuses on home loans, but economists highlight price issues

Economist Omu Kakujaha-Matundu argues that the government should address high house prices instead of focusing on mortgage repayment periods. He states that long repayment terms are often due to high housing costs, not banking rules. Kakujaha-Matundu explains that shorter repayment periods can make homes unaffordable for many first-time buyers. He suggests that borrowers can pay off loans early if they have the means. The economist also recommends reducing the cost of serviced land to lower house prices. He further suggests reviewing transfer costs and other property-related fees. The debate on housing affordability is growing as many Namibians struggle to buy homes. Recent reports indicate that 70% of Namibians cannot afford to purchase a house. Public policy analyst Lazarus Kwedhi agrees with Kakujaha-Matundu, stating that banks offer longer loans to make housing more accessible. He argues that the government should take more responsibility in solving the housing crisis. The Bankers Association of Namibia warns that shorter loan terms could reduce affordability for many Namibians.

Addressing housing affordability is critical for economic stability and social equity in Namibia.