The Rise of Affordable Housing in South Africa: Why More South Africans Are Opting for Homes Under R700K
The affordable housing market in South Africa is experiencing a significant boom, with an increasing number of South Africans opting to buy homes priced between R350 000 and R700 000. This trend is being driven by ongoing urbanisation and the growing need for accessible housing in metropolitan areas, as reported by Standard Bank.
Why More South Africans Are Choosing Homes Under R700K
In the past four years, there has been a double-digit increase in the demand for homes within this price range, a trend that has remained strong despite economic pressures. Toni Anderson, head of Standard Bank Home Services, notes that this market is showing resilience, particularly in Gauteng and the Western Cape. These regions continue to see high demand for affordable homes, making them prime areas for homebuyers looking to enter the property market.
Who Is Buying Affordable Homes?
The primary buyers of homes in the R350 000 to R700 000 range are individuals earning up to R30 000 per month. These properties are typically referred to as “affordable homes” by banks, with a preference for full-title, standalone houses in the outskirts of key metropolitan areas. Despite challenges like rising property prices, the demand for these affordable homes continues to grow, as people seek opportunities to own property.
Where Are These Affordable Homes Located?
According to Standard Bank, Gauteng remains the leader in the affordable housing market, accounting for 47% of all affordable housing loans issued in the four years leading up to February 2025. However, other provinces like KwaZulu-Natal and the North West are also seeing a rapid uptake in home loans for affordable homes. The Western Cape, despite rising property prices, continues to remain an active player in this market, accounting for 18% of all affordable housing loans.
The Growing Demand for Affordable Housing
While sectional title homes have become more popular in recent years, the demand for full-title homes remains strong. Many buyers are willing to make trade-offs, such as purchasing homes on the outskirts of major metros, in exchange for the benefits of owning a full-title property.
In addition to first-time homebuyers, many are also accessing additional funds for home improvements or expansions, indicating that these affordable homes are often seen as entry points into the property market for buyers with bigger aspirations.
The growing demand for affordable housing in South Africa shows no signs of slowing down. As urbanisation continues and the need for accessible housing intensifies, more South Africans are turning to homes priced between R350K and R700K as a way to achieve homeownership. Gauteng, the Western Cape, and KwaZulu-Natal are seeing the most significant activity, but this trend is spreading across other regions as well.
Also read: RDP Houses Allocation Period: What to Do if You Miss the Claim Deadline in South Africa
