Rent increased by only R1 in one South African province

South Africa’s cheapest rental province, the Free State, saw average rent increase by R1 between Q4 2025 and Q1 2026.

The Free State remained South Africa’s cheapest province for renters in the first quarter of 2026, with an average monthly rent of R7,501.

According to PayProp’s Q1 2026 Rental Index, the province also recorded one of the weakest performances in the country.

Year-on-year rental growth slowed to 0.6%. This makes it the second-slowest-growing province after Mpumalanga.

Compared to the first quarter of 2025, average rent increased by R48. Quarter-on-quarter growth was even weaker, with average rent rising by R1 from Q4 2025.

PayProp said this suggests that rental growth in the province could remain sluggish throughout the rest of 2026.

Other indicators also point to a weaker rental market. The proportion of tenants in arrears improved, falling from 21.5% in Q4 2025 to 20.8%.

However, these improvements were still not enough, as the Free State now has the highest percentage of tenants behind on their rent in South Africa.

The average tenant in arrears owes more than a month’s rent, with outstanding payments averaging 102.6% of their monthly rental.

In comparison, the rest of the country’s rental market performed much better. After three consecutive quarters of slowing growth, South Africa’s average rental growth accelerated to 4.7% in Q1 2026.

This saw the average monthly rent increasing to R9,582 – R450 higher than a year earlier. In provinces like the Northern and Western Cape, average rentals now exceed R10,000 per month.

However, PayProp warned that the recovery may be short-lived, as inflation, consumer debt, and interest rates are expected to continue placing pressure on the rental market.

The Free State still presents opportunities for buyers

Although the province’s rental market remains subdued, the Free State continues to offer some of South Africa’s best value for homebuyers.

According to ooba, average property prices generally range between R750,000 and R1.1 million. This makes the province one of the country’s most affordable markets.

Its central location and strong agricultural sector continue to support housing demand. The province is also attracting a growing number of first-time buyers.

DG Properties reported that 63% of home purchases in the Free State are made by first-time buyers, the highest share in South Africa.

The average entry-level home costs R990,000. This makes it one of the country’s most accessible locations at a time when many young people are being priced out of the property market.

According to Lightstone, the number of people 35 and younger buying homes has dropped by 58% between 2005 and 2025. While there are many reasons for this, affordability is one of the biggest contributors.

Banks are also showing greater confidence in the province. BetterBond said the Free State recorded 29% year-on-year growth in home loan activity during 2025.

DG Properties also noted that increased competition among lenders has led to lower deposit requirements and more competitive interest rates.

Improved lending conditions are making it easier for buyers to enter the market, with demand for 100% home loans reaching its highest level in a decade.

Financing that includes transfer and bond registration costs has become increasingly common, reducing the amount of upfront cash buyers need.