Western Cape tenants face soaring rents of nearly R12 000 a month
With average rents in the Western Cape reaching R12 000, tenants face a housing crisis amid high demand and limited availability.
Image: Ralf Kleemann
Tenants in the Western Cape are facing exorbitant rental costs, with average monthly rents nearing R12 000, making it increasingly difficult to secure affordable housing.
The latest PayProp Rental Index, which covers the final quarter of 2025, reveals that rental prices in the province are the highest in South Africa, significantly surpassing the national average of approximately R9 400.
Depending on who you ask, the sky-high prices are being blamed on strong demand for rental homes and too few properties available in many areas.
Estate agents and economists say migration to the Western Cape is a major factor driving the surge.
While renting has become outrageously costly, buying a home offers little relief, with interest rates set to rise.
The pressure is also being felt in the commercial property market, so much so that a quick stroll through parts of the Mother City's CBD — especially along St George’s Mall — shows “to let” signs plastered across shop windows down the corridor.
The PayProp Rental Index said despite rising residential rental costs, fewer tenants are falling behind on their payments, with arrears at some of the lowest levels on record.
Nationally, rental growth has slowed compared to last year, when the average rent first rose above R9,000 a month.
A provincial breakdown showed the Western Cape recorded average rent of about R11 900, followed by Gauteng at around R9 100 and KwaZulu-Natal at roughly R8 700.
The Eastern Cape recorded average rent of about R7 600, while Mpumalanga and the Free State had both been around R7 300.
North West had come in at about R6 800 and Limpopo at around R6 600.
The Northern Cape recorded the lowest average rent at roughly R6 300 a month.
Greg McDonald, of the Agency Property Group, said the Western Cape property market, particularly in Cape Town, was experiencing exceptionally high demand.
"This is largely driven by a shortage of available stock and limited expansion opportunities due to geographical constraints such as the ocean and surrounding mountain ranges," he said.
"At the same time, demand continues to grow rapidly.
"I am seeing strong semigration from Johannesburg and Durban, alongside a notable return of South Africans who had previously moved abroad.
"In addition, there is a steady influx of international buyers and tenants, as Cape Town continues to gain global recognition and attract attention as a lifestyle destination."
From an on-the-ground perspective, he said activity levels were significant.
"It is not uncommon for rental viewings to attract 20 to 30 prospective tenants, many of whom have already completed application forms before viewing," McDonald said.
Werner Bartz, of ABC International Real Estate, also said one of the biggest drivers has been sustained demand.
"Areas like Table View have become increasingly popular due to their relative affordability compared to the Atlantic Seaboard, proximity to the city, and overall lifestyle appeal," he said.
"At the same time, many landlords are entering the rental market, seeing strong returns and high occupancy rates.
However, he said, while more landlords are listing properties, demand continues to outpace supply in well-located and well-priced units.
"Higher interest rates, increased municipal charges, and general inflation have placed pressure on landlords, many of whom have had no choice but to adjust rental prices in order to maintain viable returns on their investments.
In addition, Bartz said, there has been notable regulatory and market shifts affecting short-term rentals.
Economist Dawie Roodt said there was huge migration under way to the Western Cape, leading to an increase in demand while supply lags.
"Also, the Western Cape is much wealthier than some off the other provinces, including the Eastern Cape, resulting in elevated price for just about everything."
Roodt also warned that buying right now would be like jumping into a money pit.
"I will wait a bit before I buy as interest rates may go up soon which is likely to suppress property prices," he said.
Property economist John Loos said strong demand for property in the Western Cape was being driven by migration, limited land and faster economic growth.
“There’s been a big influx of people into the Western Cape," he said.
"Over roughly the past three decades, the province’s population has almost doubled due to natural growth and inward migration.
“It also has significant land shortages.
"If you look at Cape Town, there’s a mountain in the middle, the sea on several sides, and valuable farming regions around the edges.
He said there has also been a steady inflow of higher-income migrants from the rest of the country for about two decades.
"They bring purchasing power and skills," Loos said.
“Cape Town is also known as a beautiful city with a strong international reputation.
"It attracts more foreign interest and, I suspect, more foreign property buyers than other regions of South Africa.
“Tourism is another driver.
Economically, he said, the Western Cape has grown faster than most other provinces over the past two and a half decades.
"Based on the estimates I’ve seen, Gauteng’s growth is not far behind, but provinces such as the Eastern Cape have grown much more slowly and have weaker employment rates.
“That means household disposable incomes in the Western Cape have grown faster, and people are able to demand more property."