As housing prices continue to rise and youth unemployment reaches record highs, many young South Africans feel that the dream of owning a home is becoming increasingly unattainable. A recent VOC News poll found that 91% of respondents believe that buying a house is an unrealistic goal for young people in South Africa today.
The rising cost of living, limited access to credit, and stagnant economic growth are just a few of the barriers cited by residents. One listener explained:
“I wouldn’t say that buying or owning property for young people in South Africa is an unrealistic prospect, but there are different factors to consider. The economic growth is extremely slow at the moment, which negatively impacts job creation. Then there’s affordability; the cost of living is so high that people can’t afford to buy. Sometimes people can afford it, but they don’t qualify for enough to live in a secure area that gives them peace of mind.”
Western Cape MEC for Infrastructure, Tertuis Simmers, said that the government is aware of the challenge and is working on multiple fronts to support first-time buyers, including offering subsidies and reimagining traditional ideas of ownership.
“There are new forms of ownership which speak to the reality of how young people see their future. Through my department, we’ve introduced megaprojects in the inner city and other areas outside the city where we aim to bring down the cost per square metre.”
Listen to the full interview with MEC Simmers below:
However, property economist Professor François Viruly stated that current state support is insufficient, especially in the Western Cape, where rising demand continues to drive up prices.
“Property prices have risen considerably in the Western Cape by around 5% to 6% annually. If you already own property, that’s fine. But for someone trying to enter the market for the first time, it’s a very different story. The subsidies we currently have simply don’t move the needle.”
Listen to the full interview with Prof Viruly below:
With more young people opting to rent indefinitely or live with family, experts say South Africa’s housing strategy will need to adapt quickly or risk deepening inequality and housing insecurity for future generations.
VOC News
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