Why Cape Town's rent keeps climbing

Cape Town rents surge ahead

Cape Town property prices have risen about 30% since the end of 2020, well ahead of every other metro. Average rent is now about R12,500 a month, up nearly 10% in a year.

The Rent Control Group's proposal

The Rent Control Group, a volunteer collective, proposes fair, targeted rent control for Cape Town.

“What doesn't cost a thing is regulation.”

Deputy mayor rejects rent control

Deputy Mayor Eddie Andrews says there is no chance the city will introduce rent control. Mayor Geordin Hill-Lewis has written that it not only fails, it entrenches inequality.

“No chance. Market goes where market goes, and market stays where it's enabled.”

International evidence supports regulation

University of Cape Town urbanist Professor Edgar Pieterse disagrees with the city. He says data internationally is very clear that without regulation, property owners will always extract as much rent as possible.

“If you don't regulate and intervene in rental markets… the owners of the properties, they will always extract as much rent as possible.”

Other cities regulate rents

Austria has a large share of people in regulated or social housing.Germany's rent brake caps rents on new leases in tight housing markets until 2029.

South Africa has a rental law

A Rental Housing Act amendment names unfair rent increases as an unfair practice, but it still needs to be put into effect.Until then, the only rule is that the increase must be in the lease.

“I could be paying 10K now, I could be paying 20K next year. As long as it's in the lease.”

Cape Town's Airbnb glut

Cape Town now has close to 27,000 Airbnb listings, more than Sydney, Berlin or Barcelona, cities with far bigger tourism industries.

Parties blame short-term rentals

Before the elections, six party representatives were asked about the housing crisis. Other than the DA, every party, from the EFF to the Freedom Front Plus, said short-term rentals are part of the problem.

The city blames semigration

Deputy Mayor Andrews says the shortage is caused by semigration.Because Cape Town works, people are coming in their droves.

“Because Cape Town works, you have people coming here in their droves.”

Court orders affordable housing

In July, the Constitutional Court ruled in the Tafelberg case that the City and the province had failed to provide affordable housing in and around central Cape Town, and ordered both to report back under…

Inclusionary housing remains stalled

Inclusionary housing, which makes developers include affordable units in new buildings, works in London and New York.Joburg has a policy.Stellenbosch adopted one in 2023 and approved more than 900 units.

“They do it in London, they do it in New York. This is not rocket science.”