Cape Town to Slap Tax Hike on Airbnb Owners

Summary

Cape Town is proposing to more than double municipal rates on short-term rental properties, including Airbnb listings, as officials try to address housing affordability and falling long-term rental inventory. The report compares Cape Town's high short-term rental listing count with Amsterdam, Barcelona, New York City, and Hong Kong, and notes prices rose about 30% in the five years to March 2024. The measure mirrors regulatory efforts in other global cities but is described as only one step toward solving supply and affordability issues.

• Cape Town proposes higher municipal rates on short-term rentals.
• The policy targets homes rented for short durations, including Airbnb listings.
• Short-term rentals are cited as reducing long-term housing inventory in Cape Town.
• Foreign buyers are described as attracted by Cape Town's relative affordability and beauty.
• Cape Town prices rose about 30% over five years to March 2024.
• Cape Town's short-term rental count is more than double several major global cities.
• The proposal is compared with regulations in New York City, London, and Barcelona.
• Officials still face broader supply and local affordability challenges.