1994 vs 2024: SA housing, car costs surge past salary growth

In a revealing comparison, BusinessTech reports that South African housing and vehicle costs have skyrocketed over the last 30 years, far exceeding both inflation and salary growth.

Back in 1994, an average home cost R160,113, which, adjusted for inflation, would now be R836,627. Yet, according to the Oobarometer Q2 2024 report, that same home now averages a staggering R1,458,924.

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This marks a staggering 811% increase.

Cars tell a similar story. Popular models from 1994, such as the Toyota Corolla, were priced around R46,477.

Adjusted for inflation, today’s equivalent would be R242,852. However, WesBank data shows that consumers paid an average of R392,174 for a new car in early 2024. This reflects a mind-blowing 744% increase since 1994.

With salaries unable to match these soaring costs, South Africans now face a growing gap between earnings and expenses.

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With salaries unable to match these soaring costs, South Africans now face a growing gap between earnings and expenses.

Household bills have also surged, with water tariffs climbing by 2,100% and electricity by 1,710% since 1996, according to PowerOptimal.

Although salaries have grown since the early 90s, they have not kept up with the rising cost of living. This financial burden is straining the average South African household more than ever.