🛒 Affordability
Homes, petrol, groceries — SA vs the world — 6 figures, each linked to its official source.
The number
0 yrs
What it means
Fifteen years ago the typical first-time buyer was about 32. Today they're closer to 38 — young adults are locked out of owning a home for nearly an extra decade.
The Braai Test
In 2010 a 25-year-old with a decent job could realistically plan to buy a place by 30. Today that same plan pushes towards 40 — deposits, interest rates and prices all moved faster than salaries.
The number
0.0 yrs
What it means
An average home now costs roughly 8 years of the average salary — up from about 4.5 years in 2010. In many countries the ratio sits closer to 4 or 5.
The Braai Test
Your parents' generation saved a deposit in a few years. Today's 25-year-old needs nearly double the income, in real terms, for the same starter home.
The number
0.0 yrs
What it means
The price-to-income ratio compares the average home price to the average salary in each country — same measure everywhere. South Africa sits around 4, better than the USA (~5), the UK (~8) and Australia (~9). Homes are expensive for South Africans mainly because local salaries are low, not because houses are unusually pricey.
The Braai Test
Same rule for everyone: divide the house price by the salary. On that scoreboard SA actually beats London and Sydney — the problem is our payslips, not just our house prices.
The number
R0/l
What it means
Same product, same measure: one litre of 95 unleaded, converted to rand. South Africa (~R23) is cheaper than the UK (~R33) and most of Europe, but pricier than the USA (~R18) — and about a third of the SA price is taxes and levies like the fuel levy and Road Accident Fund.
The Braai Test
Filling a 50-litre tank costs about R1,150 here, R1,650 in London and R900 in Texas. And roughly R400 of your tank is tax.
The number
0%
What it means
A basic household food basket costs roughly R5,300 a month — more than half of a full-time national minimum wage (~R4,800 take-home). In most developed countries the same comparison comes in under 15%. The measure is identical: cost of a basic basket divided by the legal minimum monthly pay.
The Braai Test
Earn minimum wage and food alone eats more than half your pay — before rent, transport or school shoes. In London the same basket test takes about a tenth.
Trend
The number
R0
What it means
The Economist's Big Mac Index compares the exact same burger in every country. In SA it's about R60, vs roughly R105 in the USA and R95 in the UK — the cheapest way to see that a rand stretches further at home than abroad.
The Braai Test
One burger, same recipe, worldwide. Ours costs nearly half the American price — proof your rand buys more here than it does converted to dollars overseas.
On the bright side
Housing is cheaper relative to income than in most rich countries
On the price-to-income scoreboard, SA homes cost about 4 years of average salary — versus 8 in the UK and 9 in Australia. First-time buyers here also get government support through the FLISP subsidy.
Source: Numbeo / NHFC – FLISP subsidyEveryday prices go further at home
From Big Macs to restaurant meals, the same goods cost far less in SA than in the US or Europe — which is why the rand is considered one of the world's most undervalued currencies.
Source: The Economist – Big Mac Index