I have watched with keen interest the work of the current Rent Commissioner, Frederick Opoku, who has been touring hostels across the country and raising concerns about the soaring cost of hostel accommodation, which ranges from GHS7,000 to GHS24,000 depending on occupancy rates.
That exercise is a very important one because it has the potential to determine whether some students remain in the classroom or are forced out of school because of their financial circumstances.
While it may be relatively easy to secure university admission today, student accommodation is increasingly becoming a national headache as tertiary admissions continue to rise alongside population growth and housing demand.
As the chancellor of a university, surrounded by hostels with cutthroat rent, I hear heart-breaking stories from students who stretch their financial limits to balance tuition and accommodation costs. At Wisconsin International University College, we have deliberately pegged our hostel fee at GHS3,000 per semester, significantly lower than other private facilities operating around the university.
However, in many university communities, hostel fees have risen far beyond the reach of ordinary Ghanaian families. Parents who are already struggling with tuition, feeding, medical bills, transportation and academic materials are now burdened with accommodation costs that sometimes exceed a worker’s annual salary. The growing cost of living and housing in urban centers continues to affect access to higher education, especially for students from low and middle-income families. For students from disadvantaged backgrounds, this situation is not just inconvenient; it is a direct threat to their education and future.
The situation has become worrying because a substantial portion of students’ financial resources is spent on accommodation, leaving little money available for tuition, medical and academic needs.
The issue also exposes a wider housing deficit confronting the country. Private developers who dominate the student hostel market often justify the high charges with increasing construction costs, utility bills and demand pressures. However, the absence of effective regulation and adequate public investment in student housing has created an environment where prices continue to rise unchecked.
Immediate reforms
As part of measures to address the challenge, the government need to establish a dedicated fund to support the construction of affordable hostels across universities in the country.
Increased investment in student accommodation infrastructure would help reduce pressure on parents and improve access to tertiary education.
The cost of borrowing for investment in hostel infrastructure is substantial, which compels most universities, particularly the private ones to avoid it, leaving students vulnerable to rather exorbitant fees.
Government, university authorities and private hostel operators must therefore work together to find sustainable solutions. Universities should prioritise the expansion of affordable on-campus accommodation.
Pension funds as solution
We need to re-examine our pension laws and open up the use of such funds to invest in the real estate sector to deal with our housing and hostel challenges. The figures from the National Pensions Regulatory Authority tell a striking story about the growing strength of Ghana’s pension sector.
Pension fund assets jumped from GHS61.8 billion in 2023 to a record GHS86.23 billion in 2024, an increase of more than GHS24 billion in just one year. That growth shows that pension funds are no longer merely passive savings pools; they are becoming major sources of long-term capital for national development.
If only 10% of the GHS86.23 billion pension assets, which is about GHS8.6 billion were channeled into purpose-built student accommodation, Ghana could significantly ease the university hostel crisis. Unlike short-term investors chasing quick profits, pension funds are naturally suited for infrastructure such as hostels because they generate stable, long-term rental income over decades.
The impact could be transformative. With structured investment, thousands of affordable hostel beds could be developed around major private and public universities where private hostel operators currently dominate the market and charge exorbitant fees.
Increased supply alone would likely force down prices through competition. More importantly, pension-backed hostels could prioritise affordability over excessive profit margins because pension funds generally seek steady returns rather than speculative gains.
Such investments would also create a triple benefit in many ways including students would get safer and cheaper accommodation; pension contributors earn long-term returns from rental income; and the country gains durable educational infrastructure.
Countries such as Kenya and South Africa have increasingly explored pension-backed infrastructure financing, recognising that pension capital can support national development while still protecting contributors’ interests.
Additionally, the government can assist private universities to secure flexible, soft or long-term loan to set up hostels to reduce the outrageous cost of rent from dubious landlords.
While at this, we can also ensure that Rent Control Department must strengthen monitoring mechanisms to prevent exploitative pricing.
Education is one of the strongest tools for national development, and no student should be denied access to it simply because they cannot afford a place to sleep near campus. The conversation the Rent Commissioner has started is therefore timely and necessary, and it must lead to practical reforms that protect students and their families.