Research News South Africa

Average urban household income at R14 000

The Newspaper Advertising Bureau (NAB) and Caxton/CTP's urban retail and readership consumer research survey, Roots 2010, shows an average monthly household income of just over R14 000, with an estimated total household monthly income of South Africa's urban homes at approximately R45-billion or R540 billion per annum.

The survey conducted between March and November 2009, surveyed every province of the country but within those regions measured the key city or town's brick and mortar households. With this sampling background, the survey is naturally weighted to the higher Living Standard Measurement groups (LSMs) - 95% of the upweighted sample falls into the LSM 6-10 groups.

According to John Bowles, Joint MD of NAB, this estimated income is held by 3.3 million households in South Africa's urban landscape. "The survey has always represented the majority of South African's wallets and the latest is no different. In our estimations, we believe the households measured make up close to two thirds of South Africa's expenditure - fairly logical considering most of the study has been conducted in SA's 'big' suburbs," he says.

Richest suburb - Pretoria East

The purpose of the study was to measure buyer and media behaviour at a localised level and is in much demand from South Africa's retail industry. One of the areas covered in the questionnaire is the general demographic section and that's where the household income numbers have been drawn.

"Whilst household income does not take asset or investment wealth into account, it does show us where the bucks are being earned and if you're a business operating in and around these 'mines,' chances are you're in the right place," adds Bowles.

Income patterns vary from region to region and more specifically from suburb to suburb, which provides a picture of South Africa's 'richest' suburbs. The table below highlights the ten highest income earning suburbs measured in the survey:

RankSuburbEstimated Household income
Average survey R14,473.01
1Pretoria - EastR28,651.32
2JHB - FourwaysR28,347.83
3JHB - Bedfordview and EdenvaleR27,816.67
4JHB - MidrandR27,781.25
5JHB - SandtonR27,737.50
6JHB - Rosebank KillarneyR26,314.81
7Pretoria - CenturionR25,051.02
8JHB - Randburg NorthR24,562.50
9Durban North - UmhlangaR24,227.27
10JHB - Randburg SouthR23,635.14

Cape Town not high in income

Gauteng suburbs feature strongly which backs up the claim that the majority of money is earned in that province. Polokwane Metropole ranks 12th, just above Somerset West and many of Cape Town's suburbs feature way down the list with Constantia only ranking 25th with an average monthly household income of just under R20 000.

Bowles explains, "Areas like Constantia would have an above average portion of retirees or 'old' money. These folks have earned their money already and are using their investments as a source of day to day household income. They really don't see this as a normal household income situation as in other areas. Polokwane though is very interesting as the metro suburbs of the city have transformed in the past three years from a predominantly white older Afrikaner area to a now predominate black diamond 'Mecca' where household earnings are high and growing."

Regional earners

By region the top earning suburbs or metro towns look like this:

  • Johannesburg - Fourways (Sunninghill, Lonehill, Dainfern ), Bedfordview, Sandton and Midrand (all mostly in JHB north)
  • Pretoria - Pretoria East and Centurion
  • Durban - Durban North, Umhlanga, Highway area and Amanzimtoti
  • Cape Town - Somerset West, Durbanville, Milnerton (CT north areas)
  • Outlying gems - Polokwane, Ballito, Witbank/ Middelburg, Rustenburg and Empangeni

The lowest income earning areas from the survey per month were Evaton in the Vaal (R4384), Pimville (R5027) and Zola (R5500) in Soweto.

Free survey

Conducted by TNS Research Surveys, the invaluable data is available free of charge to retailers, marketers, media planners and strategists and on Telmar systems. For more information go to www.nab.co.za.

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