South African’s dream of home ownership clashes with rising costs

"The South African results paints a picture of a nation yearning for stability and a more permanent place to live but grappling with significant challenges like debilitating financial pressures," says Nick Coates, CEO Sub-Sahara Africa at Ipsos. "South Africans want to own homes more than almost anyone else in the world, but they are feeling the squeeze of rising costs and financial pressures. Taking into account that millions of South Africans live in informal structures on the outskirts of every town and city in South Africa, the need for different approaches to housing issues are evident.  

Key findings for South Africa include:

• Home Ownership Aspirations: An overwhelming 92% of South Africans agree that everyone has a right to own their own home, higher than the global average of 78%. This places South Africa among the top countries globally in terms of home ownership aspirations.
• Current Housing Satisfaction: 59% of South Africans report being happy with their current housing situation, slightly below the global average of 61%. However, 22% express unhappiness, higher than the global average of 19%.
• Generational Housing Challenges: 72% of South Africans believe it is harder for their generation to buy or rent a home compared to their parents' generation, aligning with the global average.
• Rising Housing Costs: 81% of South Africans say property prices have increased in the past 12 months, while 82% expect prices to rise in the next 12 months. Moreover, 84% anticipate higher rents in the coming year, indicating significant cost pressures in the housing market.
• Financial Strain: 49% of South Africans are concerned about their ability to pay rent or mortgage repayments, higher than the global average of 37%.

"This data reveals a critical gap between what South Africans aspire to and what they can actually achieve in the current market," Coates explains. "It's not just about individual dreams; it's about the kind of society we're building. If home ownership becomes unattainable for a large portion of our population, we need to consider the long-term social and economic implications."

Renters vs Homeowners

The study highlights significant differences between renters and homeowners in South Africa:

• Security Through Ownership: 74% of South Africans say it's hard to feel secure in life without owning a home, compared to the global average of 60%.
• Strong Desire for Ownership: 89% of South African renters say they would like to own their own home, higher than the global average of 71%.
• Optimism Amid Challenges: However, 38% of South African renters don't believe they will ever be able to afford to buy a home, lower than the global average of 56%.

"These findings underscore the strong desire for homeownership in South Africa, but also reveal the challenges renters face in achieving this goal," Coates notes. "While South African renters seem more optimistic about their chances of homeownership compared to the global average, the financial pressures they face are significant."

The Generational divide

The housing crunch is hitting young people particularly hard, with two key insights emerging:

• Future Prospects: 72% of South Africans believe that even if today's young people work hard and get good jobs, they'll have a hard time getting the right kind of housing, aligning closely with the global average of 71%.
• Generational Comparison: 72% of South Africans say it's harder for people their age to buy or rent a home to settle down in than it was for their parents' generation, higher than the global average of 67%.

"We're at risk of creating a generation of perpetual renters, unable to build the wealth and stability that comes with home ownership," Coates warns. "These findings paint a picture of a generational shift in housing accessibility. Not only do South Africans perceive housing challenges for today's youth, but they also feel their own generation is facing greater difficulties than their parents did. This perception of declining accessibility across generations is a significant concern for social mobility and economic progress. Together with these findings, we need to keep in mind that young people in South Africa are particularly struggling to find employment – this widens the gap between the reality of no means to afford a permanent home and the strong aspirations and hope to own your own place to live.”

The ideal South Africa home

Despite the challenges, South Africans have a clear vision of what they're looking for in a home:

• Safety First: 59% prioritise a low crime rate, making it the top consideration for home buyers
• Location, Location, Location: 41% emphasise a good location as a key factor
• Suburban Dreams: 34% of South Africans prefer a detached home in the suburbs, higher than the global average of 19%.
• Top Housing Concerns: The biggest housing challenges identified by South Africans are high property prices (39%), high interest rates (34%), and high taxes (32%).

"South Africans aren't just looking for a roof over their heads," Coates notes. "They're seeking safe havens in the suburbs, places where they can put down roots and build a future. But with rising costs, that dream is slipping away for many."

The aspiration-reality gap

The Ipsos Housing Monitor 2025 reveals a complex housing landscape in South Africa, characterised by high aspirations for home ownership coupled with significant affordability concerns. This tension between ambition and financial reality presents both challenges and opportunities for the housing sector.

While there's clear demand for housing, the high cost remains a substantial barrier for many South Africans. Additionally, factoring safety concerns into housing considerations, further complicates the picture. This nuanced situation calls for innovative housing policies and development strategies that can address the affordability gap and safety issues while meeting the aspirational needs of South Africans.

"As we move further into 2025, understanding these nuanced attitudes towards housing will be crucial for anyone looking to make a positive impact in the South African property market," Coates concludes. "Whether it's policymakers addressing affordability and ownership issues (like title deeds), developers creating innovative housing options, or financial institutions developing new mortgage solutions, there's a clear need for collaborative efforts to address the country's housing challenges."

About the study

These are the results of a 30-country survey conducted by lpsos on its Global Advisor online platform and, in India, on its lndiaBus platform, between Friday, November 22 and Friday, December 6, 2024 in 29 countries and between Friday December 20 and Friday January 3, 2025 in New Zealand. For this survey, lpsos interviewed a total of 22,279 adults aged 18 years and older in India, 18-74 in Canada, Republic of Ireland, Malaysia, New Zealand, South Africa, Türkiye, and the United States, 20-74 in Thailand, 21-74 in Indonesia and Singapore, and 16-74 in all other countries. The sample consists of approximately 1,000 individuals each in Australia, Brazil, Canada, France, Germany, Great Britain, Italy, Japan, New Zealand, Spain, and the U.S., and 500 individuals each in Argentina, Belgium, Chile, Colombia, Hungary, Indonesia, Ireland, Malaysia, Mexico, the Netherlands, Peru, Poland, Singapore, South Africa, South Korea, Sweden, Thailand, and Türkiye. The sample in India consists of approximately 2,200 individuals, of whom approximately 1,800 were interviewed face-to-face and 400 were interviewed online. Samples in Argentina, Australia, Belgium, Canada, France, Germany, Great Britain, Hungary, Italy, Japan, the Netherlands, New Zealand, Poland, South Korea, Spain, Sweden, and the U.S. can be considered representative of their general adult populations under the age of 75. Samples in Brazil, Chile, Colombia, Indonesia, Ireland, Malaysia, Mexico, Peru, Singapore, South Africa, Thailand, and Türkiye are more urban, more educated, and/or more affluent than the general population. The survey results for these countries should be viewed as reflecting the views of the more "connected" segment of their population. India’s sample represents a large subset of its urban population — social economic classes A, B and C in metros and tier 1-3 town classes across all four zones. The data is weighted so that the composition of each country’s sample best reflects the demographic profile of the adult population according to the most recent census data. “The Global Country Average” reflects the average result for all the countries and markets in which the survey was conducted. It has not been adjusted to the population size of each country or market and is not intended to suggest a total result. When percentages do not sum up to 100 or the ‘difference’ appears to be +/-1 percentage point more/less than the actual result, this may be due to rounding, multiple responses, or the exclusion of “don't know” or not stated responses. The precision of Ipsos online polls is calculated using a credibility interval with a poll where N=1,000 being accurate to +/- 3.5 percentage points and of where N=500 being accurate to +/- 5.0 percentage points. For more information on Ipsos' use of credibility intervals, please visit the Ipsos website. The publication of these findings abides by local rules and regulations.