Cape Town is experiencing a severe housing affordability crisis, with rent prices increasing by nearly 10% in the past year, averaging R12,500 per month. According to Stats SA, property prices in the city have risen by about 30% since the end of 2020, outpacing other metros. The Freedom Front Plus's Corné Mulder stated that Cape Town has become unaffordable for everyone. The city's housing market has become a pressing concern, with many residents struggling to find affordable accommodation.
The Rent Control Group, a volunteer collective, has proposed fair and targeted rent control measures to address the crisis. The group suggests limiting rent increases, capping Airbnb operations in the CBD, adopting an affordable housing policy, and implementing a rental law already passed by the national government. Adam Narain, a member of the group, emphasized that regulation can be achieved without significant costs. The group hosted an event, which was attended by struggle legend Zackie Achmat, to raise awareness about the issue.
However, the City of Cape Town has expressed resistance to rent control measures. Deputy Mayor Eddie Andrews stated that there is "no chance" of implementing rent control, citing market forces. In contrast, University of Cape Town urbanist Professor Edgar Pieterse argues that international data shows that regulation is necessary to prevent property owners from extracting excessive rent. Pieterse emphasized that some form of regulation is necessary to address the crisis.
The City of Cape Town attributes the housing shortage to semigration, with people moving to the city in large numbers due to its perceived stability. However, this influx has driven up prices, making it difficult for residents to afford housing. In response to a Constitutional Court ruling in the Tafelberg case, the City and province were ordered to report back under oath on their efforts to provide affordable housing in and around central Cape Town.
The issue of short-term rentals, particularly Airbnb, has also been raised as a contributing factor to the housing crisis. Cape Town has over 27,000 Airbnb listings, more than cities like Sydney, Berlin, or Barcelona. Many argue that these short-term rentals drive up prices and reduce the availability of long-term rentals. The City has proposed a draft Short-Term Letting Bylaw, which would require properties available for short-term letting for more than half the year to pay commercial rates.
Some cities have implemented successful rent control measures, such as Austria, where a large share of people live in regulated or social housing. Germany's rent brake, which caps rents on new leases in tight housing markets, has been extended until 2029. In New York, a board voted to freeze rents on about 1 million rent-stabilized apartments. South Africa has had rent control before, during apartheid, for white tenants.
Inclusionary housing policies, which require developers to include affordable units in new buildings, have been suggested as a potential solution. Cities like London and New York have implemented such policies, and Stellenbosch has adopted one, approving over 900 units. However, Cape Town has yet to table its own policy, despite committing to it in 2018. The City's inaction has been criticized, with some accusing it of perpetuating spatial apartheid.
Key points
- The City of Cape Town's resistance to rent control measures has sparked debate about the best approach to addressing the housing affordability crisis.
- The Rent Control Group's proposals aim to balance the needs of landlords and tenants, while also addressing the issue of short-term rentals.
- International examples of successful rent control measures and inclusionary housing policies may provide valuable lessons for Cape Town.
