Are first-time homebuyers being priced out of the South African property market?

Rising living costs are impacting first-time homebuyers in South Africa.

Rising living costs are reshaping the landscape of housing affordability in South Africa, challenging the traditional measures of what it means to own a home.

Housing affordability should no longer be measured simply by comparing house prices with household incomes, says Francois Viruly, the chief economist at Datazone.

He says the true cost of housing includes transport, electricity, municipal charges, water, insurance and other unavoidable living expenses.

“When these costs rise together, households have less disposable income available for housing, making both home ownership and renting progressively less affordable,” Viruly says.