Top 8 African countries with the least affordable housing in 2025
The 2025 Global Housing Affordability Index from Numbeo has revealed a concerning trend across African countries: a wide gap between property prices and average household incomes.
Business Insider Africa presents the African countries with the least affordable housing in 2025
The ranking is courtesy of Numbeo
Ethiopia and Cameroon rank among the least affordable housing markets globally, with ratios indicating nearly five decades of income required to afford housing.
The new ranking places Ethiopia and Cameroon among the three least affordable housing markets in the world, trailing only behind Syria and Cuba.
The Price-to-Income Ratio (PIR) is the key metric used in this index. It compares the cost of a home to the median annual household income in a country. The higher the ratio, the more years of income it would take for a typical citizen to afford a house signaling poor affordability.
Numbeo, the world's largest database of user-contributed housing data, released the 2025 figures based on crowd-sourced entries across global cities and countries.
The data paints a stark picture for countries like Ethiopia and Cameroon, where citizens face almost five decades of income sacrifice just to own a modest home. In contrast, some African nations, like South Africa, have some of the most affordable housing ratios on the continent.
Top 8 African countries with the highest price-to-income ratios in 2025
Rank Country Price-to-Income Ratio (PIR)
1 Ethiopia 47.1
2 Cameroon 46.6
3 Mauritius 18.5
4 Egypt 18.2
5 Algeria 16.7
6 Morocco 13.4
7 Tunisia 12.2
8 South Africa 3.2
Investor interest drops as luxury units outpace demand
Real estate pioneer Ermias Amelga describes the Ethiopian market as oversupplied with expensive apartments and villas. He said: ' Speculative investors are offloading properties at discounted rates,' noting that demand has slowed and confidence has dropped.
In Addis Ababa, the situation is especially severe. Despite hosting institutions like the African Union and the UN Economic Commission for Africa, the City Administration has repaid just 1.9% of its 25.85 billion birr bond to the Commercial Bank of Ethiopia over the first three quarters of the fiscal year.
Experts blame the lack of mortgage banking, luxury-focused development, and the widening gap between housing demand and availability.
The crisis is also tied to a wider slowdown in Ethiopia's real estate sector. Developers face longer sales cycles, while government efforts to regulate the industry and close the supply gap have struggled to gain traction.
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Top 8 African countries with the least affordable housing in 2025
The 2025 Global Housing Affordability Index from Numbeo has revealed a concerning trend across African countries: a wide gap between property prices and average household incomes. Business Insider Africa presents the African countries with the least affordable housing in 2025 The ranking is courtesy of Numbeo Ethiopia and Cameroon rank among the least affordable housing markets globally, with ratios indicating nearly five decades of income required to afford housing. The new ranking places Ethiopia and Cameroon among the three least affordable housing markets in the world, trailing only behind Syria and Cuba. The Price-to-Income Ratio (PIR) is the key metric used in this index. It compares the cost of a home to the median annual household income in a country. The higher the ratio, the more years of income it would take for a typical citizen to afford a house signaling poor affordability. Numbeo, the world's largest database of user-contributed housing data, released the 2025 figures based on crowd-sourced entries across global cities and countries. The data paints a stark picture for countries like Ethiopia and Cameroon, where citizens face almost five decades of income sacrifice just to own a modest home. In contrast, some African nations, like South Africa, have some of the most affordable housing ratios on the continent. Top 8 African countries with the highest price-to-income ratios in 2025 Rank Country Price-to-Income Ratio (PIR) 1 Ethiopia 47.1 2 Cameroon 46.6 3 Mauritius 18.5 4 Egypt 18.2 5 Algeria 16.7 6 Morocco 13.4 7 Tunisia 12.2 8 South Africa 3.2 Investor interest drops as luxury units outpace demand Real estate pioneer Ermias Amelga describes the Ethiopian market as oversupplied with expensive apartments and villas. He said: ' Speculative investors are offloading properties at discounted rates,' noting that demand has slowed and confidence has dropped. In Addis Ababa, the situation is especially severe. Despite hosting institutions like the African Union and the UN Economic Commission for Africa, the City Administration has repaid just 1.9% of its 25.85 billion birr bond to the Commercial Bank of Ethiopia over the first three quarters of the fiscal year. Experts blame the lack of mortgage banking, luxury-focused development, and the widening gap between housing demand and availability. The crisis is also tied to a wider slowdown in Ethiopia's real estate sector. Developers face longer sales cycles, while government efforts to regulate the industry and close the supply gap have struggled to gain traction.
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