05/09/2026
Cost of living vs income
Cost of Living :
How much you need
to earn to live a comfortable life in
Cape Town
Civil action group STOP COCT
Caitlyn Hilliard-Lomas
·5 Sep 2026
Experts estimate that a household in Cape Town consisting of two adults and two children would need a monthly take-home income between R45,000 and R55,000 to live comfortably.
This is according to Sandra Dickson,
founder of the civil action group STOP COCT,
who reported that the group had received
complaints from residents about the
cost of living in Cape Town.
Residents complained that they are reducing their
spending on food, electricity, healthcare, education, and household repairs
because their salaries no longer cover their monthly expenses.
“Residents are telling STOP COCT that their income no longer covers the full month,” she said.
“Families are buying less food, choosing cheaper and less nutritious products, reducing electricity use and postponing medical treatment, school expenses and household repairs.”
Dickson mentioned that her estimate of monthly expenses, ranging from R45,000 to R55,000, is a more practical estimate rather than an official threshold.
She said that families with children attending former Model C schools may require at least R60,000 per month.
Depending on the number of children and any additional expenses, this amount could rise to R100,000.
Dickson pointed out that financial distress is not limited to unemployed individuals or those with extremely low incomes.
Working and middle-class families are increasingly struggling to pay for their bonds or rent, vehicle instalments, groceries, school fees, medical aid, insurance, and municipal bills.
“These households often earn too much to qualify for indigent assistance, but not enough to absorb repeated increases,” Dickson said.
Dickson said transport costs were particularly damaging because residents still had to travel to work and children still needed to attend school, regardless of increases in fuel and fares.
“These increases eventually affect almost everything else that households purchase. Economic growth is essential, but people need immediate relief,” she said.
Financial pressures are increasing
Economist Ulrich Joubert said that the official inflation rate published by Statistics South Africa represents an average and does not accurately reflect the financial pressures experienced by every household.
He emphasised that families should analyse their own budgets, living situations, and major monthly expenses to understand how rising prices are impacting them.
Electricity prices have increased by about 9.9%, while water supply and municipal services have gone up by nearly 7%.
Passenger transport services have risen by about 12.5%, and fuel costs are over 34% higher than they were a year ago.
“Where it touches the pockets of commuters, passenger transport was 12.5% more expensive than a year ago. You can clearly see the impact of these prices,” he said.
He added that the cost of maintaining a household depended heavily on where a family lived and the electricity, water, sewerage and other tariffs charged by its municipality.
The City of Cape Town recently approved an R868 million budget for the Economic Growth Directorate for the 2026/2027 financial year.
Mayoral Committee Member for Economic Growth, Alderman James Vos, and officials from the Economic Growth Directorate and the Economic Growth Portfolio Committee have been developing a budget for the upcoming financial year.
“Our mission is straightforward: to make the unemployment queue shorter,” said the City of Cape Town.
“Every programme in this budget has been designed to support that objective. By attracting investment and upskilling Capetonians, we are creating more economic opportunities for businesses and residents alike.”
Vos said that every allocation has been considered to ensure that resources are directed toward practical programs and initiatives that support economic growth, attract investment, and create more opportunities throughout Cape Town.
“These priorities have been shaped by our regular engagements with businesses across Cape Town,” said Vos.
A family of four living in Cape Town would need an estimated monthly take-home income of at least R45,000 and R55,000 to live comfortably.
