For the last few years, the South African housing market has been booming. That\’s great news for the millions of people who are lucky enough to own a home and get to see its value go up every year. However, if you\’re one of the many South Africans who wants to buy a house but struggles with affordability, you\’re probably wondering: what\’s going on? How can houses be so expensive? And why are some places so much more expensive than others? This post will explore these questions and more.
Bigger houses are more expensive than smaller houses.
Imagine that you\’re looking at a house for sale. There are two houses on the market: one is small, and the other is quite large. Which would you rather buy?
The answer is simple: people prefer to have more space in their homes than they need, so they opt for larger houses over smaller ones. This makes sense; the more space available, the easier it is to feel comfortable and relaxed when living there. But bigger houses cost more money than smaller ones—so why do we keep building them instead of scaling them down?
One reason could be that builders believe bigger homes will sell faster because buyers want them (and this may be true). But even if this were true, how does that explain why home sizes continue to increase when average household sizes are shrinking? Is there something else going on here?
Houses are expensive in cities where a lot of people want to live.
In cities, houses are expensive because the demand for housing is high. If you have a lot of people wanting to live somewhere, prices will soar. You might be wondering why anyone would want to move into a city with its large population, busy streets and traffic jams. But there are many reasons why people would choose to live in these areas:
- There are more jobs available
- There\’s a vibrant cultural scene (with museums, concerts, and movies)
- It\’s exciting!
In cities that have few houses and a lot of people who want to live there, there aren\’t as many people who are forced to build apartments.
In cities that have few houses and a lot of people who want to live there, there aren\’t as many people who are forced to build apartments. If you ask the average person why they pay more for housing in Cape Town than they would in the suburbs, they\’ll probably say something about “location” or “character.” But really, it\’s because if you want to live in the middle of Cape Town, you have no choice but to pay higher rent—and this is true even if your job is just 10 minutes away from where you live. The reason for this is simple: there aren\’t enough houses available for all the people who want them.
That said, not everyone wants their own house with a yard and a two-car garage (though many do). Some people prefer living in apartments because it\’s easier on their pocketbook; others enjoy having access to public transportation; some just like having neighbors close by so they can borrow eggs or share a cup of sugar when they run out unexpectedly on Saturday morning! So while high home prices are an issue for everyone looking at moving into a new city or neighborhood—and isn\’t always fair—it\’s also important not to overlook how much cheaper it can be depending on what kind of housing situation suits each individual best!
Because there are more single-family homes than apartments in big cities, the price of houses goes up relative to apartments.
Housing is expensive in big cities because there are more single-family homes than apartments. The demand for apartments is higher than the demand for houses, so if you\’re living alone, it\’s usually cheaper to rent an apartment than buy a house.
There are good reasons why this is the case:
- The cost of building an apartment is lower than the cost of building a house since you don\’t need as much space or materials to construct an apartment building. This means that people can afford more apartments per dollar invested than they can single-family homes.
- The average cost of living in an apartment (utilities included) tends to be lower than what it costs to live in a home with amenities like landscaping and pools; this makes them more affordable overall despite their higher upfront fees when compared with purchasing the property outright rather than renting out space within one\’s own home through Airbnb or similar services where users share their living spaces with those who need somewhere temporary while visiting friends or relatives without having lived there themselves previously (or vice versa).
The \”cost\” of a house is the total amount you pay over time, not just the price tag.
If you\’re looking to buy a home, it\’s important to remember that the cost of a house is not just the price tag. It includes all of the other costs associated with buying and owning a home.
For example, you\’ll have to pay property taxes on your house every year (which can be significant), as well as homeowner\’s insurance that protects against damage from things like fire or theft. You\’ll also need money for maintenance and repairs—things like fixing leaky faucets, clearing gutters after heavy rainstorms, and hiring professionals to replace your roof every 20 years or so. These expenses add up quickly!
You could possibly save money by living somewhere else and using the money you save on your rent or mortgage payment to buy things that make your life better, like meals at restaurants and flights to see your friends and family.
You could potentially save money by living somewhere else. If you have enough money to cover your rent or mortgage payment, then you can get rid of that expense and use the savings to buy other things that make your life better, like meals at restaurants and flights home for the holidays.
Housing costs are determined by choices people make and the places they want to live
The biggest factor that determines how much you pay for a home is where you want to live. The places that people want to live are expensive, and so the prices of houses in those areas also tend to be high. This is because of demand — there\’s a lot of competition for housing in these locations such as Cape Town.