ADDIS ABEBA WAITS ON A RENT CEILING

Jul 4 , 2026.

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.

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