{"id":813914,"date":"2025-02-25T12:00:00","date_gmt":"2025-02-25T10:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=813914"},"modified":"2025-02-25T11:05:24","modified_gmt":"2025-02-25T09:05:24","slug":"one-south-african-province-where-rental-prices-shot-up","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/813914\/one-south-african-province-where-rental-prices-shot-up\/","title":{"rendered":"One South African province where rental prices shot up"},"content":{"rendered":"\n

Over the past 10 years, renters across South Africa have had to dig deeper into their pockets to pay their bills, with the Western Cape experiencing dramatic increases.<\/p>\n\n\n\n

According to information sourced from PayProp Rental Indexes from Q4 2014 to Q4 2024, on average, rent has risen by nearly 46% nationally, with certain provinces witnessing even steeper hikes.<\/p>\n\n\n\n

In 2014, the national average rent stood at R6,207. By 2024, it had climbed to R9,051, marking a 45.8% increase over ten years. <\/p>\n\n\n\n

This translates to an average annual growth rate of around 4.6%, slightly outpacing South Africa\u2019s average inflation rate over the same period. <\/p>\n\n\n\n

This consistent upward trend has placed increasing pressure on tenants, with affordability becoming a growing concern in several regions.<\/p>\n\n\n\n

Although all provinces saw a surge in rental costs, some experienced sharper increases than others. The highest provincial increases over the past decade, by percentage, have been:<\/p>\n\n\n\n

    \n
  1. Western Cape<\/strong> \u2013 68.5% increase<\/strong> (R6,609 \u2192 R11,141)<\/li>\n\n\n\n
  2. North West<\/strong> \u2013 52.4% increase<\/strong> (R4,460 \u2192 R6,798)<\/li>\n\n\n\n
  3. Free State<\/strong> \u2013 51.5% increase<\/strong> (R4,764 \u2192 R7,216)<\/li>\n\n\n\n
  4. Eastern Cape<\/strong> \u2013 46.5% increase<\/strong> (R4,981 \u2192 R7,297)<\/li>\n\n\n\n
  5. Northern Cape<\/strong> \u2013 44.6% increase<\/strong> (R6,680 \u2192 R9,657)<\/li>\n<\/ol>\n\n\n\n

    The Western Cape experienced the most significant absolute increase, with average rental prices rising by R4,532 per month<\/strong>.<\/p>\n\n\n\n

    The Western Cape\u2019s popularity, driven by its lifestyle appeal and economic opportunities, continues to push rental prices upward, particularly in Cape Town.<\/p>\n\n\n\n

    The increase has made it the most expensive province for renters since 2016, currently 23% above the national average.<\/p>\n\n\n\n

    A big player in this is its thriving short-term rental sector on platforms like Airbnb and Booking.com.<\/p>\n\n\n\n

    The proliferation of short-term rentals, driven by the city’s booming tourism sector, inflates long-term rental prices to a point where locals struggle to compete.<\/p>\n\n\n\n

    Some critics have argued that this is linked to \u201ctourism gentrification.”<\/p>\n\n\n\n

    Very broadly, tourism gentrification refers to the process where an influx of tourists staying in short-term rentals leads to the transformation of a neighbourhood, often resulting in rising property values and living costs that price out locals.<\/p>\n\n\n\n

    Additionally, it is further complicated by increasing housing demand and a slower increase in new housing supply.<\/p>\n\n\n\n

    “The province\u2019s high property prices are a barrier to entry for investors, but for those who can afford to buy, the returns can make it very worthwhile,” said PayProp.<\/p>\n\n\n\n

    Additionally, the North West and Free State saw unexpectedly high increases, suggesting growing demand in these traditionally lower-cost regions.<\/p>\n\n\n\n

    \"\"<\/a><\/figure>\n\n\n\n

    Looking at the lowest rental growth over the past decade, as a percentage, this is seen by:<\/p>\n\n\n\n

      \n
    1. Mpumalanga<\/strong> \u2013 24.5% increase<\/strong> (R6,779 \u2192 R8,439) <\/li>\n\n\n\n
    2. Gauteng<\/strong> \u2013 37.4% increase<\/strong> (R6,677 \u2192 R9,169)<\/li>\n\n\n\n
    3. Limpopo<\/strong> \u2013 39.9% increase<\/strong> (R6,288 \u2192 R8,797)<\/li>\n\n\n\n
    4. KwaZulu-Natal<\/strong> \u2013 43.7% increase<\/strong> (R6,367 \u2192 R9,147)<\/li>\n<\/ol>\n\n\n\n

      Mpumalanga saw the slowest rental growth, with only a 24.5% increase<\/strong> over ten years, going from the most to the fifth most expensive province for rent over the decade.<\/p>\n\n\n\n

      Gauteng, South Africa\u2019s economic powerhouse, recorded a 37.4% increase<\/strong>, which is lower than the national average. <\/p>\n\n\n\n

      In 2014, Gauteng had among the highest rental costs, but by 2024, the Western Cape had surged ahead. <\/p>\n\n\n\n

      Meanwhile, the North West remains the most affordable province, though its rental costs have also increased significantly.<\/p>\n\n\n\n

      As rental prices continue to climb, affordability will remain a key issue for many South Africans. <\/p>\n\n\n\n

      With economic uncertainty and housing shortages in some areas, the next decade could see further shifts in the rental market, making it crucial for both policymakers and renters to adapt.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The average cost of rent in South Africa has increased by nearly 46% over the past decade, with one province seeing a nearly 70% increase. <\/p>\n","protected":false},"author":101,"featured_media":813933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[11791,19815,853],"class_list":["post-813914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-payprop","tag-rent","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/813914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/101"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=813914"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/813914\/revisions"}],"predecessor-version":[{"id":813994,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/813914\/revisions\/813994"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/813933"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=813914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=813914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=813914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}