Rent is rising faster than relief: Why more tenants are at breaking point

Renting a home is meant to provide flexibility and security, but for a growing number of South Africans, it has become a source of stress. The latest Residential Rental Monitor shows rising tenant vulnerability, with more households battling to keep up with rent as everyday costs continue to climb.

Data from TPN Credit Bureau shows that while most tenants still prioritise rent, the resilience seen in previous years is fading. The proportion of tenants in good standing remains relatively high, but the improvement seen after the pandemic has slowed markedly through 2025 as household budgets come under strain.

This pressure is not limited to struggling tenants. Landlords are also navigating higher rates and taxes, rising maintenance and security costs, and the need to maintain bond repayments. The result is a tighter, less forgiving rental environment on both sides of the lease.

Rental escalations are outpacing inflation

One of the clearest pressure pointsis rental escalation. Nationally, average rental growth reached about 4.8% by the third quarter of 2025, above the consumer inflation rate of roughly 3.4%. While this is an average, it hides sharp variations by area and price band.

Lower-cost rentals have seen the steepest increases, with escalations in some segments approaching 8%. In high-demand nodes, particularly in parts of the Western Cape, Gauteng and KwaZulu-Natal, tenants are facing double-digit increases. Much of this is driven by landlords rebasing rents in micro-units and shared accommodation that were initially priced below market levels.

Landlords are generally aware of affordability constraints, but many are balancing this against the risk of vacancies and the rising cost of holding property. The space for negotiation exists, but it is shrinking in areas where demand significantly outstrips supply.

Whentenants fall behind, the consequences escalate quickly

Grace periods still apply in many leases, typically four to five days to allow payments to clear. Beyond that, late or partial payments are flagged, and persistent arrears can carry serious consequences. Tenants who miss three consecutive months of rent, after proper legal notice, can be listed with credit bureaus, including data shared with TransUnion.

These adverse listings can affect access to credit long after the rental issue is resolved. While fewer rental disputes are now reaching the courts, the value of cases that do escalate has risen sharply, reflecting higher rents and longer periods of non-payment.

Renting is no longer a short-term stop

Underlying these trends is a structural shift in how South Africans use property. First-time buyers are older, ownership costs have increased, and capital growth in many municipalities has been weak.

As a result, renting has become a longerterm reality rather than a temporary phase.

That makes the current rise in tenant vulnerability more significant. For tenants, early communication and negotiation are increasingly critical. For landlords, pushing increases too hard risks vacancies and defaults. The Residential Rental Monitor suggests a rental market that remains functional, but increasingly fragile, as both sides absorb the pressure of a strained economy.

For more information, listen to TPN Credit Bureau Marketing Director Waldo Marcus using the audio player below: