South Africa’s Average Rent Surpasses R9,000 for the First Time

The average rental price in South Africa reached R9,051 in the fourth quarter of 2024, marking the first time it has exceeded R9,000. According to the PayProp Rental Index, rental growth saw a 5.2% year-on-year increase, reflecting renewed confidence in the country’s rental market.

Compared to the same period in 2023, rent increased by R453. Quarter-on-quarter, rental prices rose by R195, indicating steady recovery.

The report highlighted that landlords and rental agents had kept rental increases moderate following the pandemic, prioritizing payment reliability over profit. However, with strong tenant demand and a recovering economy, rental prices are now on an upward trajectory.

Also Read: Major Shift Coming for South African Homeowners in Complexes

Provincial Rental Trends

For the third consecutive quarter, all nine provinces recorded positive rental growth, though some showed marginal increases.

The Western Cape, Northern Cape, and Gauteng continued to have the highest rental prices, driven by housing demand, new developments, and economic activity.

Average Rent by Province in Q4 2024:

• Western Cape – R11,141
• Northern Cape – R9,657
• Gauteng – R9,169
• KwaZulu-Natal – R9,147
• Limpopo – R8,797
• Mpumalanga – R8,439
• Eastern Cape – R7,297
• Free State – R7,216
• North West – R6,798

Also Read: No Need for Worry: South African Homeowners and Property Investors Protected Under New Expropriation Act

Rental Trends by Age Group

The 30 to 39 age group remains the largest segment of renters, while younger tenants are more likely to live with parents and older tenants tend to leave the rental market upon purchasing homes.

However, a growing number of older people are renting into later years, with 6.8% of tenants over 60 years old in Q4 2024—up from 5.8% two years ago.

Gen Z renters (ages 20–29) continue to spend the highest proportion of their income on rent, allocating 32.3% of their earnings to housing.

The strong rental growth signals stability and increasing demand in the property market. With economic recovery underway, rental prices are expected to continue rising, especially in high-demand urban areas.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com