While renting in African cities has certain short-term advantages, the benefits of owning a home is significant. Owning a house gives financial security, inflation protection, and the opportunity for asset appreciation. It also allows for individualization, and stability, and promotes long-term residency and community participation.
Right off the bat, owning a home seems more advantageous than renting, but due to certain factors such as property taxes and maintenance costs, renting has become the safe option for many including some high net-worth individuals.
However, home ownership is seen as a pinnacle of success in many African regions, and as such many aspire to call themselves landlords.
Additionally, rent costs in many African cities are linked to inflation and can rise dramatically over time. Homeowners, on the other hand, benefit from fixed-rate mortgages that shield them against potential inflation.
This constancy in housing expenses facilitates better financial planning and guards against the volatility of rental markets.
Purchasing a home is an investment that must be made over time. By building equity in their property, homeowners avoid paying rent each month.
This equity may rise with time, offering security and a buffer in terms of money. Renters, on the other hand, do not accrue any equity and their housing costs do not increase their net worth.
Fortunately, certain cities in Africa are economically positioned to make home ownership seem more viable than renting. With that said here are the top 5 major African cities where owning a home is better than paying rent.
This list is based on Numbeo’s price-to-rent ratio, which is “the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside). Lower values suggest that it is better to buy rather than rent, and higher values suggest that it is better to rent rather than buy.”
Top 5 major African cities where owning a home is better than paying rent
| 1. | Port Elizabeth | South Africa | 6.3 |
| 2. | Durban | South Africa | 9.2 |
| 3. | Douala | Cameroon | 9.7 |
| 4. | Johannesburg | South Africa | 10.2 |
| 5. | Nairobi | Kenya | 11.2 |
