Tenants in Addis Ababa are facing sharp rent increases of 50 to 100 percent following the expiration of two-year government-mandated rent control agreements.
The Ethiopian Consumers’ Rights Protection Organization announced the findings after conducting comprehensive fieldwork across various sub-cities.
These steep hikes are placing a severe financial strain on a population already struggling with high inflation, rising commodity prices, and drastically diminished purchasing power.
The sudden surge in housing costs comes as the city administration’s strict rent restriction period nears its official conclusion. Consumer advocates warn that the weakened purchasing power of local residents is beginning to slow down the broader national economy.
The situation has been further compounded by continuous fuel price adjustments, supply chain disruptions, and widespread fuel shortages, all of which heavily impact daily living costs for lower-income families.
According to Kumlichew Abebe, founder and executive director of the Consumers’ Rights Protection Organization, immediate policy intervention is required to maintain social and economic stability.
Speaking to Sheger FM 102.1, Abebe noted that since the vast majority of renters belong to low-income brackets, housing volatility risks creating deep societal disruption.
The organization stressed that housing is a basic right, and the government must manage urban rent structures to align with the public’s actual financial capacities.
However, landlords and property owners offer a different perspective, pointing out that heavy municipal tax burdens are a driving factor behind the hikes.
Many property owners argue that skyrocketing inflation and rising maintenance costs force them to pass tax expenses directly onto renters to preserve their own livelihood.
Critics also note that rigid, long-term price caps risk driving rental properties into informal, unregulated black markets, ultimately reducing the overall quality and supply of urban housing.
In response to the mounting public pressure, the Addis Ababa City Administration confirmed that the current two-year rental regulatory cycle is legally scheduled to conclude on July 7, 2026.
Municipal officials stated that a comprehensive assessment is currently underway to determine the next administrative steps.
Based on the data collected from this ongoing study, the city plans to announce its final decision to the public. The administration will soon declare whether rental rates will be frozen at their current level, permitted to adjust upward to match market values, or reduced to protect vulnerable households.