Mr. Frederick Opoku, the Acting Rent Commissioner of Ghana, has raised concerns about the exploitation of students by some landlords and hostel operators through excessive accommodation charges amid the country’s economic challenges.
According to him, the increasing cost of hostel accommodation across the country is pushing some students into prostitution and other unorthodox means of survival in order to pay their rent.
Speaking during an interaction with the media, Mr. Opoku described the situation as unfair and unlawful. He noted that, given the harsh economic conditions, the high accommodation fees place a significant burden on parents and guardians, especially those already struggling to support their children’s education.
He further emphasized that the situation is even more difficult for students who lack financial support from family members, leaving many with little or no option but to engage in questionable activities to survive.
Mr. Opoku explained that although hostels are registered and monitored by the Ghana Tourism Authority, the Rent Control Department is responsible for assessing and regulating hostel pricing.
He added that the attention of the Rent Control Department was drawn to the issue following numerous complaints filed by the National Union of Ghana Students (NUGS). Many students complained that they were being charged over GH¢6,000 per semester for rooms occupied by three or more students, a situation they described as unbearable.
Some students also reported that several of these hostels lacked proper furnishing and basic amenities such as access to water. According to Mr. Opoku, further investigations revealed that some of the expensive hostels were not even properly registered.
While acknowledging the rising cost of construction and furnishing apartments in the current economy, Mr. Opoku urged landlords and hostel operators to consider the financial strength of students.
“Charging four students GH¢8,000 per semester for a single room is questionable. Landlords must consider the people they intend to serve and what they can afford,” he stated.
In a related development, many observers have commended the efforts of the current Rent Commissioner, Frederick Opoku, for touring hostels across the country and highlighting concerns over soaring accommodation costs, which now range between GH¢7,000 and GH¢24,000 depending on occupancy.
This exercise is extremely important because it could determine whether some students remain in school or are forced to abandon their education due to financial hardship.
Although gaining admission into tertiary institutions has become relatively easier over the years, student accommodation is increasingly becoming a national crisis as university admissions continue to rise alongside population growth and housing demand.
As a university chancellor surrounded by hostels charging exorbitant rents, I frequently hear heartbreaking stories from students struggling to balance tuition fees with accommodation costs. At Wisconsin International University College, for example, hostel fees have deliberately been maintained at GH¢3,000 per semester, significantly lower than many privately operated hostels around the university.
However, in many university communities, hostel fees have risen far beyond the reach of ordinary Ghanaian families. Parents who are already burdened with tuition, feeding, transportation, medical bills, and academic expenses are now expected to pay accommodation fees that sometimes exceed a worker’s annual salary.
The increasing cost of living and housing in urban centres continues to threaten access to higher education, particularly for students from low- and middle-income families. For students from disadvantaged backgrounds, this situation is not merely inconvenient; it is a direct threat to their education and future.
A substantial portion of students’ financial resources is now spent on accommodation, leaving little for tuition, healthcare, feeding, and academic materials.
The issue also exposes Ghana’s broader housing deficit. Private developers, who dominate the student hostel market, often justify high charges by citing increasing construction costs, utility bills, and growing demand. However, the absence of effective regulation and sufficient public investment in student housing has created an environment where prices continue to rise unchecked.
Immediate Reforms Needed
To address this challenge, the government must establish a dedicated fund to support the construction of affordable hostels across universities in Ghana.
Increased investment in student accommodation infrastructure would reduce pressure on parents and improve access to tertiary education.
The cost of borrowing for hostel infrastructure remains extremely high, forcing many universities, especially private institutions, to avoid such investments. As a result, students are left vulnerable to exploitative accommodation charges.
Government, university authorities, and private hostel operators must therefore collaborate to develop sustainable solutions. Universities should prioritise the expansion of affordable on-campus accommodation.
Pension Funds as a Possible Solution
Ghana must also reconsider its pension investment policies and allow pension funds to support real estate development targeted at housing and student accommodation.
Statistics from the National Pensions Regulatory Authority reveal significant growth in Ghana’s pension sector. Pension fund assets increased from GH¢61.8 billion in 2023 to GH¢86.23 billion in 2024 — an increase of more than GH¢24 billion within a single year.
This growth demonstrates that pension funds are no longer merely savings pools but have become major sources of long-term capital for national development.
If only 10% of the GH¢86.23 billion pension assets — approximately GH¢8.6 billion — were invested in purpose-built student accommodation, Ghana could significantly reduce the university hostel crisis.
Unlike short-term investors seeking quick profits, pension funds are ideal for infrastructure investments such as hostels because they generate stable, long-term rental income.
The impact could be transformative. Thousands of affordable hostel beds could be developed around major public and private universities where private hostel operators currently dominate and charge exorbitant fees.
Increased supply would naturally reduce accommodation costs through competition. More importantly, pension-funded hostels could prioritise affordability over excessive profit margins since pension funds generally seek steady long-term returns rather than speculative gains.
Such investments would provide multiple benefits: students would gain access to safer and cheaper accommodation, pension contributors would earn sustainable returns, and the country would benefit from 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 protecting contributors’ interests.
Additionally, the government should assist private universities in securing flexible, soft, or long-term loans to build affordable hostels and reduce students’ dependence on exploitative landlords.
At the same time, the Rent Control Department must strengthen monitoring and enforcement mechanisms to prevent exploitative pricing practices.
Education remains 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 initiated by the Rent Commissioner is therefore timely, necessary, and must lead to practical reforms that protect students and their families.
Abigail William Mensah Dadzie
