Where South Africans can afford to Buy in 2025
Highlights from ooba Home Loans data
- Tshwane leads income growth among buyers, up 16.8% YoY.
- Western Cape remains priciest, but affordability is slipping.
- Limpopo offers best bond repayment-to-income ratio at 17.9%.
Regional Housing Affordability in Focus: Homebuyers' 2025 Snapshot
South Africa’s residential property landscape is shifting, with key regional trends shaping where and how people are buying homes. Data from ooba Home Loans (Jan - May 2025) shows encouraging signs: household income among home loan applicants is rising in most regions, even as affordability gaps widen in others.
Top Performers in Income Growth
Of the nine provincial housing markets, Tshwane leads with a year-on-year increase of 16.8% in average monthly gross income, now sitting at R78,099.
It’s followed by:
- Eastern Cape: +9.5% YoY | R73,052/month
- Gauteng South & East: +7.3% YoY | R53,655/month
Western Cape, while still recording the highest average income per applicant at R82,797, registered a modest decline of 2.3% compared to the same period last year.
National average income rose 2.4% to R68,039/month, reflecting continued resilience in the homebuyer market.
Price-to-Income Ratios: Where It’s Most Expensive to Buy
The home price-to-income ratio is a crucial affordability marker. A higher ratio means housing is less affordable relative to earnings.
Here’s how regions ranked:
- Western Cape: 28.6 - highest in SA
- KwaZulu-Natal: 24.8
- Eastern Cape: 24.7
- Johannesburg: 24.5
- Free State: 23.3
Improved affordability was recorded in Tshwane, Gauteng South & East, and Mpumalanga, where income growth outpaced rising property prices.
Bond Repayments vs. Income: Who Pays the Least?
Limpopo stands out for affordability
- Home loan repayments = 17.9% of income
- Average bond: R1,294,535 | Monthly payment: R13,142
- Avg income: R73,371
Other top-performing regions:
- Gauteng South & East, Tshwane, Mpumalanga: ~20.3%
- Johannesburg: 21.4%
- Western Cape: 23.3% - the highest nationally, driven by average bond values exceeding R1.9 million
Buyer Age Trends: Who’s Investing and Where
- Eastern Cape: Oldest average buyer age at 42 – linked to holiday and secondary home purchases
- Limpopo: Oldest first-time buyers at 37.4 years
- Western Cape: Youngest first-time buyers at 34.2, spending the most (R1.75 million)
Notably, Western Cape’s investor activity is driving demand:
- 30.5% of home applications are investment-related
- That’s double the national average (12.6%)
Going Forward: A More Balanced Market Emerging?
With May’s 25-basis point interest rate cut, and steady growth in buyer income across several key regions, affordability is showing signs of stabilising.
According to Rhys Dyer, CEO of ooba Group, “The interplay between income growth, purchase price trends, and shifting buyer demographics suggests a recovering and maturing property market.”
Final Thoughts
As regional dynamics continue to diverge, smart buyers will track local income trends, price-to-income ratios, and age demographics to identify the best opportunities. Whether you're buying to live or invest, the data shows there’s still plenty of value to be found if you know where to look.
