Major shift for South Africa’s rental property market

South Africa’s rental market is becoming a long-term lifestyle choice, as high interest rates, affordability pressures, and changing preferences push more households to renting, rather than buying, properties.

Just Property CEO Paul Stevens explained that South Africa’s rental market is undergoing a major transformation, with ripple effects for both home seekers and the country’s economy.

“The rental market is no longer a stepping stone – it’s a strategic choice,” he said. “Tenants are prioritising lifestyle, mobility, and value. They want homes that reflect how they live today, not how people lived ten years ago.”

“Affordability is, as always, a defining factor.” Notably, in the United States and Europe, around 35% of households rent their homes.

While that figure is currently closer to 25% in South Africa, Stevens said it is likely to rise unless interest rates come down to align with global levels.

Following the Reserve Bank’s recent decision to keep the prime lending rate unchanged at 10.25%, more and more South Africans will be pushed into renting.

Pet-friendliness, lifestyle, flexibility, and the growing desire for homes that support the realities of modern South African life are also shaping a stronger shift towards renting as a practical, sustainable choice for many households.

Stevens explained that both national data and on-the-ground feedback from his franchise teams “reveal a rental landscape that’s not only resilient, but actively driving change across the broader property sector”.

One key differentiator is pet-friendliness. “South Africa’s pet industry has expanded noticeably since the Covid-19 pandemic and global shutdown, with pets becoming a lot more central to household life,” Stevens said.

The global pet care market was valued at $273.42 billion (R4.37 trillion) in 2025, according to Fortune Business Insights.

While much smaller, KLA called the South African pet market “robust” and estimated its value at over R8 billion annually.

“Owners are treating nutrition and wellness as essential rather than optional – you can see it by their increasing spend on items like pet strollers, premium food, and accessories,” Stevens said.

These factors are influencing how people choose homes, neighbourhoods and lifestyles. Properties that welcome pets consistently achieve faster occupancy, longer lease terms, and higher tenant satisfaction.

Landlords who adapt are seeing the benefits, Stevens added. “Those who don’t risk missing out on a growing segment of responsible, long-term tenants who value stability and community,” he said.

Lifestyle and tech

Commenting on the rise of ‘lifestyle-first’ renting, Stevens said tenants are choosing homes based on how they want to live, not just what they can afford.

“This includes proximity to green spaces, easy access to amenities and schools, hybrid work/live layouts, and neighbourhoods that offer a sense of community,” he explained.

“In coastal towns, long-term rentals are being snapped up by remote workers seeking a better quality of life. Suburban nodes are attracting young families who want safety, outdoor space, and good schools.”

Urban precincts, meanwhile, are drawing professionals who value mixed-use environments where they can live, work, and socialise without long, congested commutes.”

Stevens noted that people are designing their lives differently. “They’re choosing homes that support wellbeing, convenience, and connection. Lifestyle is no longer a luxury – it’s a priority,” he said.

Another recent shift in South Africa’s rental market is its growing digitalisation, with tenants now expecting online applications, virtual viewings, digital lease signing, and responsive communication.

“Smart home features – think high-speed fibre and app-based access control – are becoming standard expectations rather than premium extras,” Stevens explained.

This shift is particularly strong among younger tenants, who place a high value on speed, transparency, and convenience.

Security and neighbourhood ‘testing’

While lifestyle is increasingly important, Stevens stressed that security remains a core consideration for tenants.

“Gated communities, controlled access, reliable maintenance, and well-managed complexes continue to attract strong demand,” he explained.

“Tenants want to feel safe, and they want to know that issues will be resolved quickly and professionally.”

Stevens added that he is also seeing a growing number of tenants using rentals to “test” neighbourhoods, property types, and lifestyle fit before committing to ownership.

“This trend is particularly strong among first-time buyers and young professionals navigating a fluctuating economic environment,” he said.

“Renting gives people the freedom to explore. It allows them to understand what works for them and what doesn’t, without the long-term financial commitment of buying. For me, it’s a smart, strategic approach.”

Stevens noted that what makes the current rental evolution so significant is that it mirrors the realities of modern South African life.

This includes economic pressure, shifting work patterns, changing family structures, and a desire for homes that support wellbeing.

“The rental market is telling us something important. South Africans want choice, dignity, and control. They want homes that reflect who they are and how they live. Our role is to listen, adapt, and lead,” he said.

For the country as a whole, a strong rental market is a strong economic engine. “It enables mobility, supports entrepreneurship, and keeps capital circulating in communities,” Stevens said.

“As tenants and businesses choose flexibility, they create the conditions for a more agile, opportunity-driven South African economy.”