South Africa ranks best in the world for people who want to own a house

International real estate brokers Best Brokers ranked South Africa as the most affordable country in which to purchase property.

However, despite this ranking, many South Africans still face barriers to property ownership, with access to financing and affordability topping the list.

International real estate brokers Best Brokers analysed housing markets across more than 60 countries, adjusting data for inflation to reflect real economic conditions. 

Their findings show that South Africa ranks as the most affordable country to buy a home, with property prices exceeding average real wages by only 6.22%. 

The rest of the countries on the list of affordable places for home buyers are mostly large and developed economies.

This makes it the best market globally in terms of cost-to-income ratio in comparison to other countries like Turkey, where property prices account for 81.45% of wages. 

According to the report, Turkey is facing an inflation rate of over 61%, which severely diminishes purchasing power.

By comparison, South Africa maintains a much more balanced relationship between income and property prices. 

Other countries that performed well include the United States, Bahrain, and Denmark, where higher per capita incomes help offset property costs. 

For instance, although the United States has high property prices per square metre, high average real wages support broader homeownership.

However, South Africa’s top ranking on paper does not mean that all residents find it easy to buy a home. 

Financial barriers remain a significant hurdle for many. According to the 2024 TPN Tenant Survey Report, 58% of South Africans said financial constraints were preventing them from purchasing property.

Additionally, the report further noted that 48.1% of South Africans stated they could not afford to buy a home. 

Despite relatively low property prices, access to finance and credit also blocks many would-be homeowners from getting onto the property ladder.

The challenges for homebuyers in South Africa

Another indicator of these challenges is the growth of rental increases and the drop in vacancies within the rental market. 

The latest PayProp Rental Index for the fourth quarter of 2024 shows that the average rent reached a record high of R9,051—a 5.2% year-on-year increase. 

This is a R453 rise compared to the previous year and R195 higher than the third quarter of 2024. 

As rental prices climb, many who might otherwise be saving for a home are forced to remain in the rental market for longer.

Rent now accounts for 28.7% of household income in South Africa, up from 28.3% in the previous quarter, squeezing household budgets further. 

Alongside rising rental costs, debt repayments are also eating into income, with average repayment burdens increasing from 43.6% to 44.1%.

Additionally, 17% of tenants are currently behind on rent, prompting landlords to increase deposit requirements. 

By the end of 2024, the average deposit had risen slightly to 1.31 times the monthly rent amount, compared to 1.29 a year earlier. 

This move aims to shield landlords from inflation and rental defaults but places further stress on renters.

Rental prices also vary widely across South Africa’s provinces. The Western Cape remains the most expensive, with an average rental price of R11,141. 

In contrast, the North West is the most affordable at R6,798. The Free State and Eastern Cape both saw strong rental growth, with the Free State recording an 8.8% increase in late 2023 and a 9.1% increase in early 2024. 

South Africa’s biggest province for property, Gauteng, traditionally one of the pricier provinces, experienced a more modest 3.4% rise in rental costs.

Nationally, the rental market is tightening. South Africa’s vacancy rate dropped from 6.72% in 2024 to 5.07% in 2025, giving landlords more pricing power. 

The Western Cape had the lowest vacancy rate at just 1.07% in the third quarter of 2024, highlighting strong ongoing demand. If rental stock fails to keep pace, further price hikes are likely.