South Africans are having to rent out parts of their homes – here’s why
Amid the rising cost of living in South Africa, many are turning to becoming Airbnb hosts to boost their income – earning just over R26,000 per annum of additional income.
A new study by Airbnb surveyed over 1,800 South African hosts and guests registered on the platform and asked them questions regarding user trends.
The survey reported that 50% of its participants said they couldn’t afford the rising cost of living, with over a third needing additional income to help them make ends meet.
This is unsurprising when you consider food inflation has hit its highest point in 14 years, while fuel and electricity costs are expected to increase and remain elevated for the foreseeable future.
According to data published by Stats SA, Inflation in South Africa climbed even higher in March, moving counter to market expectations that pricing would ease for the month, while food and non-alcoholic beverages (NAB) inflation also continued to accelerate.
The annual rate for food across all categories climbed to 14% in January – the highest reading since March 2009, when the rate was 14.7%.
Although the data also noted easing fuel prices compared to record highs in 2022, data from the Central Energy Fund (CEF) points to pain at the pumps in May 2023.
The snapshot data for 25 April 2023 shows an under-recovery for petrol, indicating a price increase of up to 52 cents per litre.
Another increase that adds to the piling costs is the fact that energy regulator Nersa has approved an 18.65% increase in electricity prices for 2023 and a 12.74% hike for next year.
“As the cost of living crisis bites, people are looking for new ways to boost their income.
“Airbnb was born during an economic crisis to help people afford their homes, and 15 years later, more families across South Africa are doing the same,” said Regional Lead for Middle East Africa at Airbnb, Velma Corcoran.
According to the study, most hosts are regular people, with 80% of hosts in South Africa having only one listing.
As a result, the typical South African host earns just over R26,000 – equivalent to approximately one month’s additional pay for the average income earner – by renting their space on Airbnb.
The study also showed that the rising cost of living is pushing guests to seek more affordable family travel on Airbnb.
Three in five guests (60%) said booking on Airbnb saved them money, and one-third said they specifically chose Airbnb over other types of accommodation to save money.
While the cost of living crisis in South Africa seems to be affecting most households, Airbnb noted that most of its hosts needing the additional income are individuals working in education, healthcare or hospitality.
Two-thirds of these are women, while one-quarter of those needing Airbnb to make ends meet are over 60 years of age.
Read: What the law says about side-hustles and moonlighting in South Africa
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