Percentage of South Africans that will never own a home
Unfortunately, a large number of South Africans might never own a home.
Stagnant economic growth, rising construction costs, restrictive labour policies, slow land release, and burdensome regulations have led to severe issues in South Africa's formal property market.
According to Daily Investor, these systemic issues mean that 80% of South African households cannot afford property.
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In fact, only one formal house exists for every 3.3 families in the country that earn less than R26,000 per month.
Daily Investor reports that this accounts for more than 80% of households in the country.
This means anyone earning less than R26,000 per month is likely to never own property.
Currently, the average take-home pay in South Africa in June 2025, according to BankservAfrica, is only R17,310.
"There's something very wrong if such a large demand is not being met," said Sentinel Homes managing director Renier Kriek.
"Although the problem is well known in the property industry, no real solutions are forthcoming from the government actors who are responsible for solving these problems."
According to Kriek, the property problem is only worsening and needs to be addressed by the government.
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"It is simply not acceptable that since 2000 we have added 19.3 million inhabitants in South Africa, but our economy has managed to produce only 1.9 million homes," he said.
For the past 70 years, wage increases have not kept up with property prices globally.
This, combined with South Africa's weak economic growth, high unemployment, and low household income, all contribute to South Africans being unable to afford homes.
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