SHORT-TERM LETTING: Foreign visitors vs locals — is Hill-Lewis finally addressing Cape Town’s inner-city housing squeeze?

Cape Town's executive mayor, Geordin Hill-Lewis, has proposed a new Short-Term Letting By-Law aimed at addressing the city's inner-city housing squeeze. The new law classifies many Airbnb-style rentals as commercial, raising rates and requiring registration. Mayor Hill-Lewis believes this will create an equal playing field for businesses and hotel operations.

However, the effectiveness of this measure in providing affordable long-term housing for middle-income Capetonians remains to be seen. Recent data shows that only 8.1% of Airbnb hosts in Cape Town are foreign-based, and the median foreign purchase price is R2,7-million, far lower than previously thought. Nonetheless, 70% of all residential units in the inner city are reportedly either hotel managed or Airbnb, raising concerns about the accessibility of affordable housing for locals.