Eco-friendly housing innovations are gaining traction as a solution to improve living conditions in urban slums, particularly in Lagos, Nigeria's largest megacity. The comparative study employed a mixed-methods approach, including surveys, focus groups, and case studies of four eco-friendly housing projects across different neighborhoods in Lagos. Data were collected from residents, construction firms, and local authorities to assess the impact on economic activities (e.g., employment) and social cohesion. The analysis reveals that eco-friendly housing not only reduced environmental pollution but also increased property values by up to 20% compared to traditional constructions, leading to a 15% increase in rental income. Furthermore, these homes fostered stronger community bonds due to shared green spaces and communal facilities. The findings suggest that eco-friendly housing initiatives are effective in boosting local economies and social stability, thereby offering a promising pathway for sustainable urban development in Lagos. Local governments should prioritise funding for eco-friendly housing projects, while developers must incorporate these practices to attract investors interested in socially responsible investments. Policymakers could also consider implementing incentives for residents who adopt such homes.