By Zukile Majova
- The Tshwane Property Network says national rental escalations hit 4.76% in the third quarter of 2025 while more tenants fall behind on payments as living costs rise.
- Tenants in very high risk categories increase during leases as more people use credit cards and loans to cover rent in the R300-billion market.
Families across South Africa are feeling the pressure as rental prices climb faster than their incomes. Many tenants are now struggling to keep up with payments, putting their homes and finances at risk.
The latest Residential Rental Monitor from the Tshwane Property Network shows rental escalations reached 4.76% in the third quarter of 2025. Inflation sits at 3.4%, leaving tenants with less money for the basics.
Only 83.95% of tenants paid their rent in full by the end of the month. This is barely higher than the previous quarter’s 83.94%. More tenants missed payments altogether, rising from 6% to 6.15%.
Partial payments dropped slightly, but the numbers still show rising financial pressure. The strain is expected to grow as families head into the festive season, when many choose to spend money on other needs.
TPN’s Waldo Marcus says the market is “stable but slowing”. He says risk is rising not only when tenants sign a lease, but during the lease itself.
TPN tracks tenants after they move in and found more people slip into high-risk categories as the months pass. Many who start with good credit are turning to credit cards and loans to pay rent and cover living costs.
The share of tenants classified as very high risk rose from 11.7% at the start of a lease to 13.6% during the tenancy. This puts landlords under pressure, especially those who rely on stable returns in a R300 billion rental market.
Tenants in the Western Cape remain most likely to be in good standing, but even there more people are starting to miss payments. Gauteng saw a small improvement, but rising rents still pose a threat.
Pictured above: Tenants across South Africa face rising financial pressure as rents increase.
Image source: Pexels
