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Macroeconomic Determinants of House Prices in Urban Ghana: Evidence from Valuation Data

Author/s: Kingsley Tetteh Baako, Kwabena Mintah, Vanessa Glover-Quartey, Ernest Amankwah, Boakye Dankwah

Date Published: 13/06/2026

Published in: Volume 31 - 2026 Issue 1 (pages 8 - 31)

DOI: https://doi.org/10.64361/14445921.2026.212325

Abstract

While the determinants of house prices have enjoyed much research attention spanning many decades, the impact of macroeconomic variables has seen significantly less research. Of the studies that do exist, only a few cover developing markets, and the results from these studies are insufficient and controversial. In this paper, we examine the macroeconomic determinants of house prices in a developing economy - Ghana. Using primary empirical data on house prices, we examine the impact of macroeconomic variables on house prices in Accra, Kumasi and Urban Ghana (an aggregate of the two markets). We find strong evidence of cointegration between macroeconomic factors and house prices in Kumasi. The study reveals that in the long run, while Kumasi’s house prices are influenced by population growth, GDP growth, interest rates and inflation, prices in Urban Ghana and Accra are only influenced by population growth.

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Keywords

House Price Determinants - Housing Market - Housing Valuation - Macroeconomic Determinants

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