10/03/2025
Bad news for renters in South Africa
The average rent paid in South Africa has hit record highs, which has pushed tenants into tighter rental brackets, putting pressure on tenant finances and deposits when coupled with high interest rates and inflation.
This trend was highlighted in PayProp’s latest Rental Index Report for the fourth quarter of 2024, which showed that the average rent now exceeds R9,000 for the first time, reaching R9,051.
This marks a 5.2% year-on-year increase, with rents rising by R453 compared to a year earlier and R195 above the previous quarter.
PayProp said stronger rental growth throughout 2024 has pushed more tenants into higher price brackets.
Although the largest group of tenants still pays between R5,000 and R7,500 per month, their share has decreased from 31.2% in Q4 2023 to 28.9% in Q4 2024.
At the same time, all higher rental price brackets have expanded. Over half (51.4%) of tenants now pay R7,500 or more in rent, up from 47.6% a year earlier.
Amid this rental growth, the Eastern Cape stands out as the most affordable province for tenants.
According to PayProp, 11.1% of properties in the Eastern Cape rent for between R1,000 and R2,500, and 21.6% are priced between R2,500 and R5,000.
This is significantly higher than the national averages of 2.8% and 14.9%, respectively. However, even in the Eastern Cape, the availability of properties priced below R7,500 has declined over the past year.
The Free State also offers some relief for budget-conscious tenants. It was the only province to see an increase in properties within the R2,500 to R5,000 bracket in Q4 2024 compared to a year earlier.
However, as in other regions, the proportion of properties in the R5,000 to R7,500 range has decreased while the more expensive brackets have grown.
Gauteng, which is similar to the national rental distribution, has also seen a shift toward higher rent prices as all the more expensive categories grew. More than half of Gauteng’s tenants now pay R7,500 or more per month.
CONTINUE reading. PUBLISHED in Businesstech 9/03/2025.
https://businesstech.co.za/news/property/814817/bad-news-for-renters-in-south-africa/
IMAGE: Businesstech.
