South Africa’s rental market showed robust growth in Q3 2024, with national rental inflation at 4.8%, slightly below Q2’s 4.9% but marking the strongest increase since late 2017. The Western Cape continues to dominate as the most expensive province for renters, with an average rent of R10,875 and an annual growth rate of 9.3%. This figure is over R1,400 higher than the Northern Cape, the second most expensive province.

Other provinces experienced mixed growth. Limpopo reported the second-highest growth at 8.4% with an average rent of R8,372, while Mpumalanga had the lowest at 0.7%. Gauteng and KwaZulu-Natal saw modest growth rates of 3.1% and 3.0%, respectively. The national average rent rose to R8,856.

Improving tenant affordability was a highlight, with tenants spending less than 30% of their income on rent for the first time since early 2023. Debt repayments also decreased to 44.6% of income, down 2.1% from the previous year. PayProp attributed these improvements to wage growth and easing economic pressures.

Falling inflation, which dropped from 5.1% in June to 3.8% in September, combined with the Reserve Bank’s interest rate cut in September, further contributed to stronger financial positions for tenants. Real-terms rental growth reached its highest level since 2017.

With inflation at 2.8% in October and further rate cuts expected, tenants and landlords alike are poised for continued relief and stability, creating a more sustainable and balanced rental market.