Airbnb Boom in Cape Town Spurs Calls for Regulation Amid Housing Concerns

Cape Town is experiencing a short-term rental boom, with its Airbnb sector showcasing an astounding number of listings that surpass the combined totals of major cities like Sydney and San Francisco. Velma Corcoran, Airbnb's Regional Lead for Middle East and Africa, indicated that the platform has driven significant economic activity in the city, supporting over 42,000 jobs and generating in excess of R14 billion.

Despite its economic benefits, the rise of Airbnb has sparked a debate around its implications on the local housing market. Concerns relate to inflated property pricing and altered rental structures, which may contribute to a housing crisis, especially problematic for the city's residents.

Most of you have seen it in movies. Pillgy houses in Cape Town charges R300 000 for a night.

Three hundred thousand per nights.

I totally get it pic.twitter.com/KnDG8YC8MC

— xyz’🏆 (@xinpingxinx) October 12, 2022

Recognizing the potential adverse effects, Airbnb has joined the call for more regulation in the short-term rental market. The proposed solution is the creation of a National Register, which would provide transparent data to the government, enabling the formulation of informed policies and appropriate regulations across all short-term rental platforms.

The need for oversight is also echoed by the Department of Tourism's White Paper, which outlines the strategy for tourism development over the next decade and beyond, with an emphasis on regulation of short-term rentals.

Cape Town's attractiveness is also highlighted by a 'semigration' trend, as people move away from Johannesburg—a city facing its own challenges—to seek better quality of life in the Western Cape. This shift has impacted the demographic wealth distribution, with Cape Town's millionaire population surging by 20% in the past decade, while Johannesburg's has decreased significantly. Predictions suggest Cape Town might become Africa's wealthiest city by 2030, which may further intensify the need for strategic planning and regulation to ensure sustainable growth in the property rental sector.