Household spending up 70% over five years

Average annual household spending in South Africa has climbed by about 70% to R95,183 in the past five years, Statistics South Africa said in its latest Income and Expenditure Survey, released on Tuesday.

When adjusted for inflation, the increase amounted to 24.6% or about R18,779 a year.

The survey also showed that average levels of spending were significantly different between population groups, and that nearly a third of spending by households goes towards housing, water, electricity, gas and other fuels.

The figures from the 2010-11 income and spending survey will be used as a basis for calculating new weightings for the basket of goods and services measured by the consumer price index from the start of next year. The current weightings are based on data from the 2005-06 survey, the last time the survey was conducted.

Dramatic increases in electricity tariffs mean that nearly a third of spending by households goes towards housing, water, electricity, gas and other fuels, Statistics SA said.

This dwarfs the percentage of income spent on food, which accounted for just 12.8% of overall spending, it said.

Transport, which would include the rising cost of petrol, accounted for 17.1% of overall spending, the survey showed. Miscellaneous goods and services accounted for 14.7% of overall spending.
Average levels of spending were significantly different between population groups, the survey showed.

The annual average for households headed by Africans was R55,920 while the average for coloured-headed households was R97,965.

Indian/Asian-headed households spent an average of R198,695 a year while white-headed households spent an average of R314,524.

According to the survey, average household income levels rose by 16.7% to R119,542 over the past five years.

There were also wide divergences across various income groups.

Average income for African-headed households amounted to R69,632 while the average for coloured-headed households was R139,190.

Indian/Asian-headed households earned an average of R252,724 a year while white-headed households earned an average of R387,011 — more than 5.5 times the income of the average African-headed household.

The survey results are separate from those released in the census carried out by Stats SA in 2011. The survey was carried out between September 2010 and August 2011, and involved sampling individual households over a period of four weeks, through both diaries and questionnaires.

(Business Day Live)

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us