Over the past decade, rental prices in South Africa have seen a notable increase, with the national average rent rising from R6,247 in 2014 to R8,654 in 2024, as reported by PayProp. This increase has forced tenants to allocate a larger portion of their income to rent, with the percentage rising from 20% in 2014 to between 26.6% and over 30% in Q1 2024. The Western Cape experienced the highest rent increase, with a 55.9% rise over ten years, from R6,609 in 2014 to R10,300 in 2024. Other provinces, such as the Free State (+45.4%) and North West (+41.3%), also saw significant hikes.

Despite these increases, wage growth has not kept pace with rising living costs. While the average formal salary increased by 81.9% over the decade—surpassing inflation at 62.3%—other essential costs, such as food, electricity, and transport, have soared. As a result, more tenants are falling into arrears, with PayProp reporting that 18.3% of tenants could not meet rent payments in Q1 2024.

Post-pandemic, rental growth has slowed, with quarterly increases tapering to 3.8% in Q1 2024. However, tenant affordability remains a concern, exacerbated by high inflation and interest rates. With inflation continuing to outpace rental growth, the economic pressure on tenants shows no signs of easing, leaving many South Africans struggling to maintain housing while cutting back on other essentials like food and utilities.