These Unoccupied Houses in Lekki

I pride myself in the quality of education that I got. It wasn’t costly but it was top notch. It has served me well and I remain eternally grateful for it. I passed through the classes of notables like Professor Familoni who I consider a wizard in econometrics…till today, I can’t say I really grasped the essence of that harrowing course.

As I was taught, the invisible hands, first proposed by Adam Smith, is said to be the best determinant of price as well as allocator of resources in a free market economy. But is it really? Up comes the challenges posed by the increasing number of unoccupied houses in Lekki. It is the case of the more you try to rationalize it, the more confused you become. Is economic theory really applicable in Lekki?

The major puzzle here is that given the large stock of real quality houses in Lekki, rental prices should be on the downward swing but they are not. The second challenge is similar to the first, why are there still a large number of house rental houses construction projects ongoing when the occupancy ratio of the current stock is low?

Any economist out there with reasonable answers to these question is welcomed to express his thoughts.

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