Cape Town's rental prices: luxury or lunacy compared to Joburg?

It’s a debate that never seems to die: Cape Town versus Johannesburg, who’s got the better deal when it comes to rent? Mzansi has been talking about this for years, and honestly, it’s no surprise.

Cape Town may have been crowned the best city in the world, but that title comes with a hefty price tag, especially if you’re trying to survive on more than just ocean views and mountain hikes.

Digital creator and MC Nande Ramncwana recently took to Instagram to air her shock at just how ridiculous Cape Town’s rental prices have become.

“Guys, I just saw one bachelor apartment for R16,500, not even a one-bed,” she exclaimed. “In Joburg, I would get a modern three or four-bedroom apartment.”

It’s safe to say she’s not alone in her disbelief.

For many young professionals and creatives, staying at home with their parents is suddenly looking like a pretty smart financial move because, honestly, who can afford these prices?

Historically, Johannesburg has always been the more affordable city when it comes to rent. In 2021, data showed that a one-bedroom apartment in Cape Town’s city centre averaged around R9,892 per month, while Joburg’s equivalent was roughly R6,500 - about 34% cheaper.

The gap widened even more with bigger spaces, with a three-bedroom apartment in Cape Town hitting R20,327 compared to Joburg’s R14,621.

The trend has only continued, with Cape Town’s property market proving time and time again that it caters more to high-income earners, international investors, and tourists rather than the average South African.

But why is Cape Town so expensive?

First, there’s the simple issue of supply and demand. Everybody wants to live in Cape Town, whether it’s for the beaches, the mountains, or just the general "soft life" aesthetic that Instagram influencers love to show off.

But there’s not enough space to go around, especially with strict zoning laws and the Table Mountain National Park keeping the city from expanding outward as Johannesburg does.

Then there’s the tourism factor. Cape Town isn’t just a city - it’s a global holiday destination. High-earning expats, digital nomads, and short-term renters (hello, Airbnb!) have flooded the market, driving up rental prices and making it even tougher for locals to find affordable long-term housing.

Foreign investors also snap up prime real estate, further inflating the cost of living.

Of course, Cape Town does offer a stunning quality of life, if you can afford it. From world-class restaurants and wine farms to breathtaking hiking trails and beaches, there’s no denying the city’s appeal. It’s the kind of place that makes you feel like you’re living in a postcard.

But that lifestyle comes at a premium. Public services are generally better, streets are cleaner, and electricity (for the most part) is more reliable compared to other metros.

All of this means higher municipal costs, which inevitably get passed down to renters.

Everyday expenses are also steeper in the Mother City. Logistics costs are higher because Cape Town is far from major inland trade hubs, meaning groceries, fuel, and consumer goods often come at an extra cost.

Even job opportunities don’t quite match up to Johannesburg’s economy. With fewer corporate headquarters and a job market heavily reliant on tourism, retail, and creative industries, salaries tend to be lower compared to Joburg’s finance and business-driven sectors.

And let’s talk about transport or the lack thereof. Unlike Johannesburg, where people can rely on taxis and the Gautrain to get around, Cape Town’s public transport system is patchy at best. That means most residents need cars, adding petrol, insurance, and maintenance to their monthly costs.

And if you’re brave enough to Uber or Bolt everywhere, well, let’s just say your bank account will feel it.

So, is Cape Town worth it? If you’ve got deep pockets, sure. The lifestyle is unmatched, the scenery is breathtaking, and the overall vibe is hard to beat. But for the average Mzansi resident trying to build a life, Johannesburg remains the more practical choice.

It may not have Table Mountain, but at least you’ll have money left after paying rent.