
With 2023 being the first real “pandemic-free” year for South Africa, predictions and trends are becoming more stable. In turn, we have closely analyzed the rental market and found that it is largely influenced by changes in society, technological advancements, and economic conditions.
How these changes affect the rental market:
- Socio-Cultural Factors and Technology: Changes in how we work and live have a big impact on the rental market. More people are working from home, so there is a growing demand for rental spaces that are suitable for remote work. Landlords who provide home offices or work-friendly accommodations are more likely to have tenants interested in their properties. Technology has also made renting easier. Online platforms allow people to search for rentals, apply, and even make payments online. This makes the whole process more efficient and transparent for both tenants and landlords.
- Economic Factors: The COVID-19 pandemic has affected our finances and jobs. Many people have less money to spend, and some have lost their jobs and are still struggling. If the current challenges, like utility issues, are not resolved, more people could lose their jobs. This economic uncertainty has a direct impact on the rental market. Businesses are struggling, and if employees lose their jobs, they may have trouble paying their rent. This could lead to more empty rental properties and less demand in the market. Despite rising interest rates, which make people more cautious about buying homes, the overall economic instability could have a negative effect on the rental market in 2023.
However, there is some good news. According to Stats SA, unemployment rates have decreased. This means more people are finding stable jobs, which could boost the rental market in 2023. When people have steady employment, they are more likely to afford rental properties. Zahir Vallie, CEO of Z-PROP says that the decrease in unemployment rates offers a glimmer of hope for market recovery and growth in 2023. This positive trend offers hope for growth and stability in the rental market in the coming year.