Cape Town draws digital nomads amidst growing housing crisis

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Cape Town named as as top destination for remote workers

Beautiful Cape Town was recently recognized as one of the world’s top destinations for digital nomads in 2025, ranking 6th out of 25 cities on a global list compiled by Big 7 Travel.

The city, celebrated for its stunning landscapes, culture, and urban sophistication, is a big drawcard for digital nomads who look for things like high-speed internet, co-working spaces, cost of living, and, of course, affordable housing, which has contributed to an ever-escalating housing crisis in the city.

As reported by EWN, the influx of remote workers, coupled with foreign investment, has only intensified competition in the housing market, driving up property prices and making it increasingly difficult for middle- and lower-income residents to afford accommodation.

Many locals who once lived in the city centre or well-connected suburbs are now being priced out, forced to relocate to areas with inadequate infrastructure and longer commute times. Some have even left Cape Town entirely, seeking more affordable living conditions in smaller towns or other provinces

What’s to be done?

In response to these challenges, in October last year, the Western Cape government unveiled an ambitious plan to tackle the affordable housing shortage, with over 7 000 units on the cards for development in the coming years.

This initiative aims to provide affordable housing close to economic and job opportunities, addressing the pressing need for accessible accommodation within the city.

Small-scale developers are also being encouraged to construct affordable rental units, in order to create housing solutions that cater to the diverse population of Cape Town, ensuring that the city remains inclusive and accessible to all.