Affordability, as the years go by has become more of a primary concern for citizens in many African cities, as they attempt to strike a balance between their income and living expenses.
- Business Insider Africa presents the top 5 African cities with the most affordable housing in 2025.
- This list is courtesy of Numbeo.
- Pretoria ranks number 1 on the list.
The Price-to-Income Ratio (PIR), a key economic statistic that illustrates this equilibrium, quantifies the correlation between average income levels and real estate expenses.
A great PIR indicates that housing is reasonably priced concerning income, which has several socioeconomic advantages.
In this case lower is better, as pointed out by Numbeo.
Numbeo notes that the price-to-income ratio is an important metric of apartment purchase affordability, with a lower ratio indicating greater affordability.
It is commonly computed as the ratio of median apartment costs to median family disposable income, expressed in years of income (though variants exist elsewhere).
African cities benefit from having a strong PIR because it ensures that a significant portion of the population can afford to buy or rent homes without excessive financial strain.
In cities where housing costs are proportional to average income levels, more people can achieve homeownership, fostering long-term financial stability and reducing homelessness rates.
Furthermore, inexpensive housing leaves families more extra funds to spend on other essentials, such as healthcare, education, and transportation, which boosts local economies. More financial flexibility boosts consumer spending, job development, and overall economic growth.
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This increases the overall well-being of city people and encourages greater living standards, and in cities where housing is cheap, disposable income can be allocated to other secondary economic activities, and or personal hobbies.
Cities having a high PIR become enticing places for enterprises seeking to establish operations.
A workforce that can afford quality housing without facing great financial hardship is more productive and stable, making these communities ideal destinations for investment and economic development.
At the same time, social inequalities are less of an issue in cities that offer affordable homes.
With that said, here are the 10 African cities with the most affordable housing according to Numbeo’s price-to-income ratio.
Top 5 major African cities where most residents can afford housing in 2025
| Rank | City | Price-to-income ratio | Global rank | Country |
|---|---|---|---|---|
| 1. | Pretoria | 2.4 | 7th | South Africa |
| 2. | Johannesburg | 3.9 | 21st | South Africa |
| 3. | Durban | 4.9 | 50th | South Africa |
| 4. | Cape Town | 4.9 | 51st | South Africa |
| 5. | Rabat | 9.6 | 136th | Morocco |
