Property owners in South Africa are under mounting financial pressure due to soaring property rates and utility tariffs, with costs rising far above inflation and affecting the sustainability of homeownership. Between 2009 and 2024, property rates across 39 municipalities grew at an average of 6.8% annually, outpacing inflation, which averaged 5.1% over the same period. This situation is aggravated by flawed General Valuation Rolls (GVR) conducted every four years, which sometimes result in substantial overvaluations. Some owners, particularly in smaller municipalities, have faced extreme property rate increases of up to 2000%, as highlighted by the Organisation Undoing Tax Abuse (Outa).

The financial strain is compounded by steep increases in utility tariffs. From 2009 to 2024, electricity tariffs rose by an average of 10.5% annually, and water rates by 10.2%, both significantly outstripping inflation. Stats SA’s recent five-year analysis (2019-2024) showed electricity rates outpacing other costs, growing by 11.2% annually. Over the longer period from 1996 to 2024, water and electricity tariffs increased five and six times faster than inflation, respectively, highlighting a severe cost escalation that is particularly burdensome given South Africa’s deteriorating infrastructure.

Service delivery has declined markedly, with property owners facing frequent water outages, electricity load shedding, and poor road conditions. This mismatch between rising costs and declining service quality has generated widespread frustration and scepticism about whether property owners are receiving value commensurate with escalating charges. Without intervention to address these disparities, the economic outlook for South African property owners appears increasingly unsustainable, with mounting costs and minimal service improvements threatening the viability of homeownership.