Can You Afford a Home in 2026? The Key Figures South African Buyers Need
Buying property in South Africa in 2026 is less about scrolling listings and more about confronting the numbers. Everyday expenses remain stubbornly high, from groceries to electricity and municipal bills, and although interest rates are lower than their recent peak, they still heavily influence what buyers can reasonably manage each month.
This year, the biggest challenge for homebuyers isn’t finding property, it’s aligning expectations with financial reality. By looking at real household budgets and how banks assess affordability, buyers can avoid overextending themselves and make more sustainable decisions.
Why affordability is the real obstacle
Home affordability isn’t determined by purchase price alone. The true pressure point is monthly cash flow.
Over the past few years, South African households have absorbed rising costs across almost every category: food, utilities, transport, insurance, schooling, and healthcare. While inflation has cooled, disposable income hasn’t rebounded in the same way. As a result, lenders remain conservative, and buyers are far more price-sensitive.
The cost of everyday life
For middle-income households, bond repayments must compete with basic living expenses. Understanding what’s left after essentials are covered is key to knowing what can realistically go toward a home loan. Using a typical metro household earning roughly R35 000 to R45 000 gross per month, with two adults and one or two children, average monthly living costs (excluding a bond) can easily sit between R23 000 and R35 000.
A breakdown of typical middle-income household spending shows why affordability remains under pressure in 2026. Core living costs including food, utilities, transport, education, healthcare, insurance, and connectivity, typically consume between 55% and 65% of gross monthly income.
When existing debt repayments, modest lifestyle spending, and irregular expenses are added, total non-housing costs often rise to 60%–75% of income, before any bond repayment is considered. This leaves a far smaller margin for housing than headline salaries or bank pre-approvals may suggest.
The gap between what buyers technically qualify for and what they can sustainably afford is largely driven by cash-flow pressure, not property prices alone. As a result, realistic budgeting, rather than maximum borrowing, has become the key determinant of successful homeownership.
What this means for buying power
For many households, everyday expenses consume between 60% and 75% of gross income. In practical terms, that leaves about R8 000 to R12 000 available for bond repayments, regardless of what a bank pre-approval might suggest. This explains why two buyers earning the same salary can afford vastly different homes. Fixed expenses and lifestyle choices are just as important as income.
How banks assess affordability
While each bank uses its own risk model, they all focus on the same fundamentals: income, existing debt, verified expenses, and credit behaviour. Lenders also apply minimum living-expense benchmarks, even if a buyer claims lower monthly spending. This ensures repayments remain sustainable under pressure.
Approval isn’t just about what you earn, it’s about how stable your finances appear over time.
The 30% guideline still matters
Using the 30% guideline, a household earning R35,000 per month would have a bond repayment of R10,500. However, when estimated living costs of ±R23,000 are added, total monthly commitments reach ±R33,500, leaving very little financial buffer and creating higher financial risk.
At an income of R40,000 per month, a R12,000 bond repayment combined with ±R26,000 in living expenses results in total commitments of ±R38,000. This level may be manageable, but households are likely to feel financially stretched.
With a monthly income of R45,000, a bond repayment of R13,500 and living costs of ±R29,000 bring total commitments to ±R42,500. This scenario is generally more sustainable, provided spending is well managed.
Costs buyers often overlook
Affordability doesn’t end with the purchase price. Upfront costs include transfer duty (where applicable), conveyancing fees, and bond registration costs, all payable before moving in. After purchase, homeowners must budget for rates and taxes, insurance, maintenance, and, in estates or sectional title properties, monthly levies. Ignoring these expenses is one of the fastest ways to turn a manageable bond into financial stress.
How to improve affordability without earning more
Increasing buying power isn’t only about salary growth. Deposit size, credit health, existing debt, and loan structure all play a major role. A larger deposit reduces monthly repayments, lowers total interest paid, and improves the chances of securing a better interest rate. Even an additional 5–10% upfront can make a meaningful difference. Credit behaviour is just as important. Strong repayment history and reduced unsecured debt help banks compete for your application, often resulting in better rates and long-term savings. Comparing offers across multiple lenders can further improve affordability, as each bank prices risk differently.
In 2026, successful homebuyers are not the ones who borrow the maximum, they’re the ones who plan carefully. Buying within a realistic monthly budget, accounting for the full cost of ownership, and securing the best possible interest rate are what make homeownership sustainable.