City of Cape Town maintains digital nomads are not driving up rental prices
According to Work Wanderers, digital nomads can spend up to R50,000 during their stay in the city of their choice.
Cape Town CBD. Picture: © druid007/123rf.com
CAPE TOWN - The City of Cape Town says digital nomads can be an economic asset.
The metro’s comments come as concerns have been raised about the effect the new remote working lifestyle will have on rentals for locals.
But local authorities say this is not the case.
According to Work Wanderers, digital nomads can spend up to R50,000 during their stay in the city of their choice.
Research by the organisation shows these remote workers add to the revenue of the cities they choose to live in.
The City of Cape Town’s Mayoral Committee Member for Economic Growth, James Vos, agrees.
He said while there are concerns over the cost of living, short-term rentals don’t influence overall rental pricing in Cape Town.
"These high-earning professionals boost the local economy by supporting businesses and creating jobs with our goal to maximize the economic opportunities this trend brings to Cape Town," said Vos.
According to Airbnb’s public data, listings on the platform represent just 0.9% of the 818,000 formal housing units in Cape Town, which is less than 1 in 100.
Airbnb data also shows in the last four years from 2020 to January of 2024, the total number of active listings in Cape Town did not increase significantly.
Vos said if rentals on the platform were to add long-term renting, it would lead to an average reduction in rent of R69 per month.