Average rents rose 5.2% year on year in the second quarter of 2026, the fastest growth since early 2025, the PayProp Rental Index shows.

PayProp released the index on 29 September. The average rent reached a record R9,715 a month, R497 more than a year before. National growth was up from 4.8% in the first quarter and gathered speed through the quarter, from 4.7% in April to 5.6% in June, PayProp said.

Rents still beat inflation, but by the smallest margin since the third quarter of 2024, PayProp said. Consumer inflation climbed through the quarter to 5.0% in June. PayProp said landlords may be gaining less from higher rents because the cost of owning and maintaining property is also rising.

The Western Cape pulls away

The Western Cape posted rental growth of 9.7%, its best result since the last quarter of 2024, and its average rent rose to R12,561, more than R1,100 above a year earlier. The gap to the national average is now R2,846 a month. The province is close to R2,000 a month above the Northern Cape, the next most expensive province to rent in. PayProp said the province’s lead over the rest of the country is still growing.

North West was the only province other than the Western Cape to beat the national figure, with growth of 7.8%. The other seven provinces trailed. Mpumalanga was again the slowest market, at 2.3%, though that was faster than in the first quarter. PayProp calculated that national growth would have been 4.3%, below inflation, if the Western Cape were left out.

Rental growth in the second quarter of 2026 against inflation, %
Western CapeWestern Cape: 9.7%9.7%North WestNorth West: 7.8%7.8%NationalNational: 5.2%5.2%Inflation, JuneInflation, June: 5.0%5.0%National excl. W CapeNational excl. W Cape: 4.3%4.3%MpumalangaMpumalanga: 2.3%2.3%
Western CapeWestern Cape: 9.7%9.7%North WestNorth West: 7.8%7.8%NationalNational: 5.2%5.2%Inflation, JuneInflation, June: 5.0%5.0%National excl. W CapeNational excl. W Cape: 4.3%4.3%MpumalangaMpumalanga: 2.3%2.3%

Source: PayProp Rental Index, second quarter of 2026. Inflation is the June rate cited by PayProp. Chart: Rand Desk

Arrears tick up from a record low

The share of tenants behind on rent rose to 16.9% from 16.7% in the first quarter, which had been the lowest on record. PayProp said tenants’ payment record remained good nationally, with arrears still at the joint-second lowest level the index has measured.

PayProp said the recent interest rate increases will lift what tenants spend on debt, a pressure that tends to show up in rent arrears six to nine months later. “We may see further rises in arrears around the end of the year,” it said. It said rental agents should keep a close watch on tenant affordability and payment habits for the rest of the year.

More coverage of rents, home loans and listed property is on our property page, and our personal finance desk follows other household costs, including the fuel price. PayProp’s release did not give a date for its next index.