The index revealed that many South Africans are choosing to live in areas where they can be independent of municipal water and electricity services — driven largely by a lack of trust in local government.
In South Africa, municipalities play a very important role. They are responsible for providing the essential services that enable people to live with dignity, including clean, safe drinking water, reliable electricity, regular waste collection, and well-maintained roads.
These are not luxuries. They are necessities that every resident relies on daily.
However, these services do not come free. Just like any organisation, municipalities need money to keep running. They must pay workers, repair broken pipes and roads, and keep everything running smoothly. That money comes from the residents, who use the services and are expected to pay for them.
It is a two-way street. If residents pay, municipalities can deliver. If municipalities deliver, residents are more willing to pay. But when one side stops doing their part, everything begins to fall apart. That is exactly what we are seeing now.
According to the Absa Homeowners’ Sentiment Index for the first quarter of 2025, many South Africans have lost faith in municipalities to provide these services. They are tired of poor service, broken promises, and being asked to pay for things they do not receive.
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What municipalities provide
The Index revealed that South Africans want to live in areas where they do not have to depend on the municipality for water and electricity.
They want homes with their own water systems, solar panels for electricity, and private services for waste and security. In short, they want to take back control. They are moving away from places where the government is supposed to help, and choosing places where they can help themselves.
76% of respondents indicated a desire to move away from state-supplied electricity, while 49% expressed interest in replacing municipal water sources.
This is not just a small change; it is a big warning. It shows that trust is being lost. And if that trust is not repaired, the whole system could collapse. Both municipalities and residents must do their part. If they do not, the future of service delivery in South Africa looks very uncertain.
Not depending on municipalities
Nondumiso Ncapai, managing executive of Absa Home Loans, said that many households are actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity.
While 64% are exploring borehole and filtration systems, and 53% are considering rainwater harvesting to improve water security.
“We’re seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today’s environment.”
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Sentiment across the property market
Overall homeowner sentiment declined slightly by 2 percentage points to 85% in Q1 2025, down from 87% in Q4 2024.
She said the decline reflects growing uncertainty around the United States’ policy direction and the South African Reserve Bank’s decision not to implement a widely anticipated rate cut in March.
Despite this, the current reading remains the second-highest since the Index’s inception a decade ago.
The average age of homebuyers continues to decline, with first-time buyers entering the market at 38 years old.
People not selling
The Index has also shown that not many people are selling properties, as most are still adopting a wait-and-see approach, anticipating that they will receive more money when they sell in the future.
When it comes to renting, many people indicated that they had saved enough for a deposit or sought more space, while others continued to favour renting for its flexibility and perceived affordability.
At the provincial level, the highest overall homeowner sentiment was recorded in Limpopo (93%), the Free State (92%), marking its highest score on record, and the Northern Cape (92%).
“Migration trends continue to shape local dynamics: the Western Cape remains a net beneficiary of inward migration, although the pace has slowed over the past three quarters.
“The Eastern Cape continues to record positive net migration, while KwaZulu-Natal has seen an uptick in outward migration.”
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