Research from UK-based Online Mortgage Advisor has ranked Johannesburg as the number one global city where purchasing property has become the most affordable, at the fastest rate, since 2018.
The company analysed where in the world buying property has become more or less affordable, compared square meterage an average employee could buy versus in 2018, based on the average annual salary and average house price in each city.
In 2022, the average worker in Johannesburg could afford 23.3 square metres compared to 14.6 square metres in 2018, an increase of 8.6 square metres.
Edmonton in Canada and Denver in the USA rounded out the top three, as workers could afford 8.1 and 5.2 more square meters respectively.
It also became easier to buy property in Cape Town, but residents could only afford 1.6 extra square metres during the same period.
Rental wise, the company investigated where in the world rental prices have – or have not – kept up with average salaries by comparing the percentage of salaries spent on rental costs in recent years.
Cape Town became the most affordable for renters, as workers spent 14.85% less of their salaries on rent in 2022 when compared to 2018.
In Johannesburg, renters spent 6.7% less of their salary on rental costs meaning rent has become cheaper in relative terms.
Port Elizabeth performed the worst in the analysis where workers now spend 22.6% more of their income on rent.
*a negative value means that rents have become relatively cheaper, while a positive value means that they have become more expensive in comparison.
