FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds

Fortune Logo

Addis Abeba's renters and property owners are waiting on a city government decision that will set how far rents can rise under a two-year-old control regime. Owners feel their income has been frozen as costs climb, while tenants fear another bite out of earnings already stretched thin.


The pressure shows in the numbers. Many households spend more than 30pc of their income on rent, and a substantial minority more than half. A city-centre studio now averages 45,000 Br a month, ranging from 35,000 Br to 65,000 Br. For a family of five earning about 32,000 Br and paying 12,000 Br, a proposed 42pc increase at renewal means weighing whether to move the children from private to public school.


The rent law, two years old, tied annual increases to inflation and living costs, set a minimum two-year lease, and registered close to half a million units, though informal deals persist. A study behind the city officials' thinking found increases had slowed from 28.76pc to 20.58pc, and suggested that holding inflation below 10pc could steady rent growth near 11.24pc, the ceiling officials now favour.


Beneath the argument lies a shortfall of more than one million homes. With rentals making up more than 61pc of housing in the capital and demand still outpacing supply, a cap may hold prices for a while, but it cannot build the homes the city lacks.


You can read the full story    here    


PUBLISHED ON Jul 04,2026 [ VOL 27 , NO 1366]

[ratemypost]


Related Posts

[ssba-buttons]

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Energy Never Consumed, the Cheapest Megawatt

When the energy bill jumps, the reflex is to buy a way out of it. Factories, commerci...

Federal Tax Drive That Punishes Firms Playing by the Rules

Not long ago, I advised an international client that had earmarked approximately 45 m...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

In Going Digital, the State Designs for the Citizen It Wants to Have

Aug 8 , 2026

The World Bank asks readers to picture a mother in rural Ethiopia who has never held...

The Rains May Fail, Policy Dare Not

Jul 31 , 2026

Weldu Yiheysh has not read the Pacific temperature charts. He does not need to. In Shibta District of Enderta Wereda, in...

Cost Recovery by Public Institutions Becomes a Hidden Tax

Jul 25 , 2026

Ideally, citizens who have paid income tax all year should not have to reach for thei...

Millions Looking for Work. Companies Cannot Find Many to Hire. A Paradox?

Jul 18 , 2026

Pressed in Parliament on jobs and household incomes, Prime Minister Abiy Ahmed (PhD)...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Ten Years at the Gate, a Dream That Never Stood Still

Last Sunday, my family gathered for what was meant to be a simple farewell. There was...

What Every Parent Really Asks in Children Education

Every parent shares the dream of seeing their children grow into knowledgeable, respo...

Life Matters

Children Fall. Some Parents Detonate

As an overprotective mother, I know that sudden and cold knot in the stomach all too...

The Fear I Learn to Let Go Of

Every time a sudden loud noise comes from our living room, my heart stops. I drop whatever I am doing and run, certain someone is crying or...