House rental prices in Windhoek skyrocket
N$76 billion needed to tackle housing shortage
Windhoek's rental prices have increased dramatically to an average of N$7 348 for a two-bedroom unit in the absence of effective rent regulation.
Windhoek’s housing shortage, which currently stands at 300 000 units and requires N$76 billion to address, is directly driving rental prices to unaffordable levels.
This was warned by Popular Democratic Movement (PDM) MP Inna Hengari, who stated that the average rent for a two-bedroom unit in the capital in 2024 has risen to N$7 348, reflecting an increase of 14.7%, while inflation stands at 5.1%.
Critics believe that property developers and landlords are profiting from the limited housing available, while the majority of Namibians are increasingly unable to afford decent accommodation.
According to the National Housing Policy (2023), only 2.8% of households earn more than N$20 000 per month, approximately the income needed to afford a mortgage on a house at market price worth N$1.2 million.
With 88% of households classified in the ultra- and low-income groups, most residents are unable to transition to homeownership and instead turn to the rental market, where affordability is rapidly deteriorating.
“The demand for rental space in Windhoek has exploded. One-bedroom apartments that were rented for N$2 500 [per month] in 2015 are now going for N$5 000, and I get more than ten calls the moment a unit becomes available,” a local property developer told Network Media Hub (NMH) anonymously.
He attributed the rising costs to broader inflation and rising municipal rates. “The cost of living has increased. Landlords adjust rent to recover municipal costs and earn a return. It’s a business,” he said.
Still, he acknowledged the need for rent control, provided landlords are included in the consultations.
“We must protect tenants from exploitation by those who offer poor quality housing at high prices, but the government must find a balance so that landlords are not driven out of business.”
Rent regulation
The absence of effective rent regulation continues to frustrate both tenants and legislators.
Hengari drew attention in parliament this week to the Rent Ordinance 13 of 1977, which provides for rent control boards to mediate disputes and regulate rent, but which has been dormant for more than three decades.
“Landlords continue to demand deposits equivalent to one month’s rent, which are not placed in interest-bearing accounts, depriving tenants of their legitimate financial benefit,” she said, referring to section 25(2) of the ordinance.
She posed five official questions to the Minister of Urban and Rural Development, Sankwasa James Sankwasa, demanding clarity on when rental boards will be revived, whether tenant deposits will be regulated, and what concrete plans exist to address the affordability crisis.
Sankwasa confirmed that the rent control board is still in the pipeline but has not yet been implemented, despite first being proposed in 2017.
Experts say the lack of investment in affordable public housing, currently below 0.1 per cent of gross domestic product (GDP), combined with weak tenant protection, is driving more Namibians into informal housing.
Currently, almost 67% of urban residents live in informal conditions, according to the housing policy. Rent for a shack in an informal settlement averages N$900 to N$1 200 per month.
“It’s not just a housing issue. It’s a matter of equity, dignity and long-term urban stability,” Hengari concluded. - [email protected]; [email protected]
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