5 major African cities where owning a home is better than renting in 2026

One of the most obvious indicators that it could be a smart idea to buy a house rather than keep renting is a lower price-to-rent ratio.

• The price-to-rent ratio measures whether it is more affordable to buy or rent a home.
• A low price-to-rent ratio suggests that home prices are reasonable compared to rent costs, making buying more attractive.
• Lower ratios indicate more balanced markets and less financial strain for first-time buyers.
• According to Numbeo, several major African cities currently have low price-to-rent ratios, indicating that homeownership is financially advantageous there.

The statistic, which compares the cost of owning a house to the cost of renting it, is straightforward, yet it provides useful information on long-term financial benefit and housing affordability.

Fundamentally, the price-to-rent ratio aids in providing a practical response to the following query: Is it more affordable to rent over time or own this property outright?

In comparison to rental income, a low ratio indicates that property prices are reasonably priced.

To put it another way, the price of purchasing a home is not much more than what you would eventually pay in rent.

Financial hardship is more likely in markets where the ratio is high, since purchasers frequently exceed their budgets to purchase expensive properties.

A lower percentage, on the other hand, indicates a more balanced market where genuine economic value underpins property prices.

This increases the sustainability of homeownership, especially for first-time purchasers.

The ratio also takes into account more general market conditions.

A lower percentage frequently suggests that supply and demand for housing are reasonably balanced, preventing a sharp price rise.

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This gives buyers greater leeway to bargain for better prices and less pressure to make snap judgments.

Additionally, it may indicate a more stable real estate market where fundamentals rather than speculators drive prices.

Numbeo shows that standardizing comparisons across markets is made easier by using realistic assumptions, such as determining rent per square meter based on actual apartment sizes (50 square meters for a one-bedroom and 110 square meters for a three-bedroom).

The ratio nevertheless offers a solid foundation for assessing affordability and making wise choices even when taxes and maintenance expenses are not taken into account.

In the end, a low price-to-rent ratio benefits purchasers by bringing the cost of ownership into line with actual rental values.

With that said, here are the major African cities with the lowest price-to-rent ratio, indicating that owning a home is more financially viable than paying rent, per data from Numebo.