Lack of affordable accommodation in Cape Town is an ongoing issue and may be intensified by the rise of online hospitality company Airbnb.
Property management firm PayProp says Airbnb has driven down rental availability and driven up rental prices in the CBD.
Owners are renting out their properties in the City Bowl and the surrounding area for shorter stays, explains PayProp CEO Louw Liebenberg.
He says long-term property stock prices are pushed up due to the quick returns from short-term rentals.
People are putting up their accommodation for rent on Airbnb for short-term rentals with the expectation that they will get higher income.— Louw Liebenberg, PayProp CEO
Liebenberg advises that the effects of Airbnb are most evident in the Mother City and other coastal towns.
He says Airbnb has caused competition for property to become even more intense in the province.
According to Liebenberg, the high demand and costs of rental property has affected the R15,000+ per month bracket the most.
Take a listen to his analysis:
This article first appeared on CapeTalk : How Airbnb has made renting in Cape Town even more pricey