The latest data from Lightstone Property paints a sad picture for those hoping to own a home in South Africa one day. Systemic issues such as a stagnant economy, poor salaries and escalating property prices are why many will never own a home.
As such, the organisation says 80% of South Africans are priced out of the formal property market. In fact, only one formal home exists per 3.3 families. And these pertain to residents who earn R26 000 per month. Anyone earning less per month will likely never be able to own a home. According to BankservAfrica, the average take-home in South Africa in June 2025 was just R17 310.
80% WILL NEVER OWN A HOME
Therefore, the vast majority of South Africans are priced out of the market altogether, and the trend is only worsening, reports Daily Investor. Worse still, even though the problem is well known in the South African property industry, no real solutions to tackle low-income housing are forthcoming.
More worrying is the fact that even with average salaries showing impressive annual improvements, the majority of South Africans are no closer to own a home. Since 2000, 19-million more people inhabit South Africa. However, only 1.9-million homes have been built. Therefore, the root cause to our low-cost housing crisis needs to be addressed by government.
PROPERTY OUTPACING INCOME
It’s no secret that property prices typically outpace those of wages. This has been the case for more than 70 years, not only in South Africa but globally, too. Nevertheless, mismanagement of state-owned entities and poor economic policy are restricting the economy’s growth potential. As such, experts say government urgently needs structural reform that embraces deregulation, labour market reforms and more privatisation.
If 80% of South Africans cannot afford to own home, something is terribly wrong economically. Builders and developers are unwilling to meet the demand for low-cost housing because the private sector is driven by profit and not charity. It’s not an innovation issue but rather a systemic one that only government can truly rectify.
DO YOU THINK GOVERNMENT CAN DO MORE FOR LOW-COST HOUSING?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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