Housing markets around the world vary significantly, with some countries having a higher proportion of renters than homeowners.
- Factors contributing to rental trends include economic conditions, housing affordability, government policies, and cultural preferences
- High property prices, limited mortgage access, and urban migration have led to a growing demand for rental properties in Africa
- African countries with the highest percentage of people living in rented housing are South Africa, Nigeria, Kenya, and Egypt
Factors such as economic conditions, housing affordability, government policies, and cultural preferences contribute to rental trends.
As of 2024, the following countries have the highest percentage of people living in rented housing.
Top 10 countries with the highest rental populations (2024) according to Eurostat
| Rank | Country | Percentage of Population Renting (%) |
|---|---|---|
| 1 | Germany | 50.9% |
| 2 | Austria | 45.8% |
| 3 | Denmark | 40.8% |
| 4 | France | 35.3% |
| 5 | Sweden | 35.1% |
| 6 | EU | 30.1% |
| 7 | Ireland | 30.0% |
| 8 | Netherlands | 29.9% |
| 9 | Finland | 29.7% |
| 10 | Luxembourg | 28.9% |
Key factors influencing rental trends
DON’T MISS THIS: Top 5 major African countries where renting is better than buying a home
- Affordability Challenges – In countries with high property prices, renting becomes the most viable option for many people.
- Urbanisation – Rapid urban migration leads to increased demand for rental housing, particularly in major cities.
- Economic Stability – Countries with stronger economies, such as the United Kingdom and Italy, offer stable rental markets with government regulations protecting tenants.
- Government Policies – Rental laws, housing subsidies, and tenant protection measures influence the percentage of people renting in each country.
Africa’s rental housing situation
In many African countries, renting is the most viable housing option for a significant portion of the population. High property prices, limited mortgage access, and urban migration have led to a growing demand for rental properties.
Major cities in South Africa, Nigeria, Kenya, and Egypt have some of Africa’s highest rental populations.
Johannesburg and Cape Town see strong rental demand due to migration and affordability constraints.
In Nigeria, Lagos and Abuja face housing shortages, driving up rental rates. Nairobi in Kenya and Cairo in Egypt also have large renter populations due to urban growth and limited homeownership opportunities.
DON’T MISS THIS: Top 5 major African cities where most residents can afford housing in 2025
Government policies and housing initiatives in Africa aim to provide affordable rental options, but challenges such as informal settlements, high rental costs in urban areas, and inadequate housing supply persist.
As a result, rental housing remains the dominant choice for many urban dwellers.
Conclusion
Rental demand is high across the continent due to financial constraints and rapid urbanisation. Countries with strong rental markets continue to adapt by introducing policies to ensure affordable and secure housing for their growing urban populations.
