A recent report reveals that 16.9% of South African tenants are currently behind on their rental payments, as the PayProp Rental Index shows rental costs continuing to climb faster than inflation. The national average rent reached R9,218 in the second quarter of 2025, marking an increase of R433 from the same period last year and R86 higher than the first quarter of 2025. Despite these rises, overall rent arrears fell slightly, with the average arrears percentage dropping to 73.3%, the lowest recorded in the history of the index.
The report highlights that most tenants are still managing to meet rental obligations, but many are under increasing financial strain. Rental applicants now spend an average of 52.1% of their income on debt repayments, up from 46.7% in the second quarter of 2024. With less disposable income than a year ago, many are more vulnerable to financial shocks, which could push them into arrears in the near term.
While higher-risk applicants are accruing more debt, those classified as minimum- or low-risk have shown some improvement. This group now spends around 36% of their income on debt repayments, down from 37.4% last year, and also allocates a smaller share of their earnings to rent. Analysts caution, however, that the widening gap between income and expenses for many tenants could increase financial vulnerability, especially as utility and transport costs remain high.
