The latest data from Stats SA shows that increases in rent and school fees are outpacing any financial relief. According to National Debt Advisors’ Sebastien Alexanderson, this is forcing households to make difficult trade-offs between housing, education, and growing reliance on debt.
22 April 2026: The latest data from Stats SA shows a clear and concerning trend: rental costs increased by 4.0% while education fees rose by 5.4% in 2026, with private school fees climbing even higher.
This sharp rise in two of the most essential household expenses is placing sustained pressure on already stretched budgets.
This is according to Head of National Debt Advisors Sebastien Alexanderson, who said this convergence is creating a growing affordability crisis felt in everyday financial decisions.
“South Africans are being squeezed where it hurts most, on the essentials. When rent and school fees increase together, there is no flexibility in the system. People are forced to make impossible trade-offs.”
That trade-off is increasingly stark. Pay rent in full and fall behind on school fees. Keep children in school and stretch finances to cover both, often by relying on credit. Either way, financial pressure builds.
In the South African context, this dilemma carries deeper consequences. “Education is widely seen as a pathway to upward mobility, which is why many families prioritise school fees even under severe financial strain. At the same time, housing costs, particularly in urban areas, are rigid and unforgiving, leaving little room to adjust,” said Alexanderson.
According to Alexanderson, this is where debt begins to fill the gap.
“We are seeing more consumers using short-term credit to cover long-term obligations like rent and education. That is a dangerous cycle, because debt is being used for survival, not progress.”
He said that while some areas of inflation have eased, including certain food categories and fuel over the past year, these savings are not translating into real relief. Fixed costs continue to climb, effectively cancelling out any gains.
“The result is a financial environment where households feel trapped. Even those who are employed and earning stable incomes are struggling to keep up with rising essential costs,” said Alexanderson.
Beyond the numbers, the pressure is reshaping behaviour. “Families are downsizing homes, relocating further from economic hubs, or reconsidering schooling options, decisions that carry long-term implications,” said Alexanderson.
He offered the following tips for families to make it through this period:
- Prioritise fixed obligations strategically: Keep housing secure first, then proactively engage schools early if fee pressure builds. Many institutions offer payment plans, discounts for upfront payments, or temporary relief options.
- Renegotiate where possible: Rental markets are not entirely inflexible. Tenants can attempt to renegotiate lease terms, especially if they have a good payment history or are willing to sign longer leases.
- Audit and cut non-essential spending aggressively: In high-pressure environments, discretionary categories (subscriptions, dining out, premium services) should be reassessed quarterly, not annually.
- Avoid short-term debt for long-term expenses: Using credit for recurring costs like rent and school fees compounds risk. If unavoidable, prioritise the lowest-interest options and create a clear repayment plan.
- Explore schooling alternatives without compromising quality: Consider public schools with strong academic records, hybrid learning models, or institutions offering bursaries and scholarships.
- Build even a small emergency buffer: A modest reserve (even one month of expenses) can reduce reliance on credit during temporary shortfalls.
- Seek professional financial guidance early: Debt counsellors or financial advisors can help restructure obligations before the situation escalates into unmanageable debt.
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Author: Omega Ngema from Financial Wealth Holdings on behalf of Naitonal Debt Advisors.
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