Middle-Class Homebuyers Face Affordability Challenges

The South African property market is experiencing a boom, particularly in the Western Cape, with lower interest rates potentially facilitating home purchases. However, age is a critical factor in securing home loans; lenders often prefer shorter loan terms for older applicants due to concerns about income stability post-retirement. Conversely, younger buyers enjoy longer repayment periods, making monthly payments more manageable. In the U.S., the middle-class is increasingly burdened by housing costs, with many households now unable to afford homes despite having median incomes. Recent data shows that the share of middle-class Americans buying homes has dropped significantly as housing prices soar, leaving many families sidelined. The challenges of high mortgage rates and prices are exacerbating the struggle for average-income earners, highlighting a growing affordability crisis.