Renting a home keeps getting cheaper in Limpopo and the Northern Cape – but the North West and Free State are getting more expensive fast
- Rental prices in the Northern Cape and Limpopo are still dropping – even without counting inflation – according to PayProp's latest rental index.
- The North West is still the cheapest province in which to rent, but prices are increasing fast.
- The Free State is also seeing a continued fast increase in rental prices.
- For more stories go to the Business Insider South Africa homepage.
Average rental prices continued to drop in Limpopo and the Northern Cape in the second quarter of 2019 on a year-on-year basis, according to the latest PayProp Rental Index, though at a slower rate than earlier in the year.
By contrast rental rates in the North West – the cheapest province to rent – grew more than twice as fast as the national average, and increased faster than in the first part of the year.
In Limpopo, PayProp said, prices for the quarter were down 1.02% year on year in quarter two, after having decreased by 2.86% in the first quarter.
In the Northern Cape the second quarter decrease was 3.5% year on year, compared to the 3.63% decline the company recorded in the first quarter of 2019.
Those declines were against the backdrop of a national average increase of rental prices of 3.86%, a little shy of inflation.
In the North West the average price of a rental was 8% more than a year before, after growing 7.43% in the first quarter of the year.
Even so, the North West remained very cheap by national standards, with an average rental of R5,040 – compared to more than R8,000 in Gauteng and more than R9,000 in the Western Cape.
The next cheapest province to rent, the Eastern Cape, is 16% more expensive than the North West.
Relatively speaking, though, the Free State and Northern Cape proved to be more affordable than the North West considering the level of income of renters in each of the three provinces.
In the North West the average rental payment took up 28.1% of after-tax income, PayProp said. In the Free State that proportion was 27.7%, and in the Northern Cape it was 27.5%.
That was even after average rentals grew by 6.58% year on year in the Free State in the second quarter, after increasing by 8.4% in the first quarter, the biggest jump in any province this year.
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