Cape Town - The average rent for property in South Africa for Q4 2024 was R9 051, according to the PayProp Rental Index.
This is the first time the average price of rent in the country was over R9 000, as year-on-year, rental growth increased by 5.2% for Q4.
Rent for Q4 was R453 higher than the year prior and R195 more than the previous quarter.
The report showed rental growth recovery, signalling confidence in the SA rental market.
The report said: "Landlords and agents had been holding off on large rental increases in the wake of the pandemic, prioritising reliable payments instead. But with tenant demand high and the economy recovering, the industry is well set for real-terms growth."
For a third quarter in a row, all provinces recorded positive rental growth with one teetering on the edge and the positive streak breaking by next quarter.
Rental prices in provinces such as the Western Cape and Limpopo have been significantly impacted by local supply and demand.
Other factors that can affect the price of rent include: new building projects starting or workplaces opening or closing.
The average rent in the nine provinces for for Q4 2024 were:
- Eastern Cape: R7 297
- Free State: R7 216
- Gauteng: R9 169
- KwaZulu-Natal: R9 147
- Northern Cape: R9 657
- North West: R6 798
- Limpopo: R8 797
- Western Cape: R11 141
- Mpumalanga: R8 439
According to the report, the age distribution amongst tenants is broadly the same as it was a year ago.
Those who are in the age group of 30 to 39, make up the biggest group of renters.
Younger people tend to live with their parents while older people tend to leave the rental sector as soon as they buy a house but a rising group of older people are renting into older age.
In Q4 2024, 6.8% of the tenants were over the age of 60, a hike from the 5.8% two years earlier.
The youngest age group account for 20.8% of tenants, down from 21.6%.
The 20 to 29 age bracket (Gen-Z) tend to spend more on rent proportionally in comparison to any other age group at 32.3% of their income.