By Vivian Warby

The affordable housing crisis in South Africa and globally is undeniable.

Despite years of democracy, spatial inequalities and systemic barriers remain largely unaddressed in the country.

Yet, there is hope. I discovered this as I delved deep into the affordable housing crisis this year, guided by experts in the field who kindly gave me hours of their time.

For instance, within our townships some of the most innovative solutions to avert the potential disaster are being incubated by ordinary South Africans. One only has to look at the work of micro developers to see this and, while this solution is not yet perfect, it goes a long way to addressing the issue.

Added to that, this year, more than any other, saw more stakeholders coming to the table, joining the cause and pulling together to try and make a difference.

Thanks to the tireless work of tenacious individuals – many of whom you’ll meet in this article below – dedicated to ensuring every South African has access to a dignified home that can also be used as an asset, we have begun to see some results.

Some of the advocates have been fighting for justice since the 1990s, while others are new voices in the critical conversation. All are united by their commitment to seeing Cape Town and South Africa flourish.

As a property editor, I would like to urge all mainstream media and all property publications to put their efforts into this affordable housing sector in the years to come. Let’s continuously highlight the reality of most of our population who, faced with insurmountable obstacles from lack of access to finance to lack of title deeds, struggle to get on the first rung of the property ladder. Much more can be done.

And to the South Africans, including the government, banks, financiers, developers, big corporates and estate agencies out there looking to make a true difference, I urge you to look to this sector to make your mark.

My wish for 2025 is that the hopes of those striving for change in this sector are realised and that their wishes for 2025, as documented below, come true.

This is what experts are hoping for…

Associate Professor François Viruly, property economist and director at the Urban Real Estate Research Unit, University of Cape Town

I wish that we could reduce barriers to homeownership in South Africa.

The property market remains a significant area of inequality, with far too many households denied full participation. A home serves not only as shelter but also as a potential wealth-generating asset.

However, the inability to fully secure the full bundle of rights associated with it reduces the ability of many households to finance and extract value from the property market.

I wish the government would prioritise the delivery and regularisation of title deeds to beneficiaries of RDP housing, those occupying houses in the lower rungs of the housing market. The title deeds are crucial for households to exercise full property ownership rights.

The Tenure Support Centre has estimated that of the four million houses delivered by the government, some 1.6 million title deeds remain outstanding.

Accelerating the delivery of the title deeds must become a priority if we are to unlock the economic potential of properties in South Africa.

I also wish that greater market and policy recognition be given to the players that function in segments of the market that affect South Africans most.

According to the Centre for African Housing Finance, some 75% of properties on the deeds registry are valued below R1.2 million.

By prioritising the two key areas – delivering title deeds to homeowners and giving greater recognition to the lower rungs of the South African housing market – South Africa can take meaningful steps towards ensuring inclusive access to property ownership and start alleviating the housing crisis.

Lusanda Netshitenzhe, CEO of TUHF21

As 2024 ends, uMaStandi, which finances property entrepreneurs in the townships, is proud of the progress made by property entrepreneurs in delivering quality affordable housing in townships.

We are especially pleased with the steady growth of our newest branch in eThekwini; this speaks to our commitment of creating real development impact in major townships around the country.

We realise that we cannot achieve township economic growth alone. To this end, we plan to continue working on developing meaningful partnerships with municipalities to address regulatory hurdles, improve service delivery and advocate for investment in bulk infrastructure to unlock the economic potential of townships.

We also would like to see more financial institutions coming on board with capital to support property entrepreneurship in these markets.

Most of the groundwork has been done. We look forward to seeing implementation of the necessary reforms in 2025, particularly the by-law review in Cape Town which will be a game-changer for townships in and around the City of Cape Town and, hopefully, offer a blueprint for other municipalities considering ways to support investments in townships.

* TUHF21 is a not-for-profit, property financier that, through uMaStandi, supports small-scale rental entrepreneurs in townships

Nick Budlender, Ndifuna Ukwazi’s urban policy researcher

Urban policy researcher at Ndifuna Ukwazi (NU), Nick Budlender.

My hope for next year is that the entire human settlements sector starts to treat our housing and segregation crisis with the urgency it deserves.

We desperately need a coherent, evidence-based policy framework to guide housing development, and we need funding and institutional structures that line up with the public pronouncements and stated priorities of politicians.

I would love to see practical measures implemented that prioritise tenure security and the restructuring of our cities into places that are fair, dignified, sustainable and productive.

I hope that state funding is used to advance affordable housing projects with the greatest potential impact and the strongest likelihood of success, rather than the allocation of money being driven largely by political imperatives.

* Ndifuna Ukwazi is a South African non-profit organisation focused on advocating for land and housing justice, promoting equitable access to urban land and addressing spatial inequality through legal action, research and community support.

Brian Bango, executive chairperson of the Western Cape Township Developers Forum

Affordable housing has had many strategic “partners” from the public and private sector, with little success. The population growth, urbanisation, slow economic growth and subsequent high unemployment, conspire to add to the lack of affordable housing.

We need to find creative ways to tackle the phenomena. In 2025, my wish is that we learn from one another in order to have a meaningful impact on addressing the urgent need for affordable housing.

For example, what Glen Jordan is doing with Empowa in Mozambique, with regard to financing and housing, is another way to address the challenge. The sector requires creative thinkers to be involved in creating products that speak to the grass roots of the problem.

Unemployment has created a breed of creative thinkers but, again, they are in the informal sector and not recognised by the formal sector as bankable. Really? A multi-billion rand market not bankable? We need to resolve the affording housing crisis before it causes chaos.

Professor Ivan Turok, Professor of City-Region Economies at the University of the Free State

The UN has declared that adequate and affordable housingis an essential human right.

Yet, hundreds of thousands of people in the Western Cape live in squalid conditions without basic services.

Our formal housing systems are failing to meet the demand because either they don’t cater for low-income communities or they respond too slowly or inadequately.

I hope that all three spheres of the government will work together more closely and in partnership with civil society and the private sector to provide decent, well-located affordable housing in our cities and towns.

In particular, I hope to see more support for the efforts of small-scale developers and households to deliver solutions to the housing crisis.

* Turok is also the South African National Research Foundation research chair and ranked in the top 1% of global scientists by Stanford University and Clarivate Web of Science, within the specific field of urban and regional planning.

Cynthia Ngxukuma, owner of small-scale rental unit property management company Bukholethu Property Management

I would like to express my sincere appreciation for the hard work and dedication of all stakeholders involved in our sector.

Their contributions and efforts have been invaluable and we are grateful. May I take this time to recognise and thank the Landlords, Developers, TDFWC, DAG, COCT, uMaStandi and so many others – too many to mention.

To the leadership of the sector: our attention to details have been instrumental in achieving part of our mandate this year. All contributions have not gone unnoticed and I want to publicly acknowledge all efforts.

As we cross over to 2025, my wish for my colleagues in this sector is that we keep up the excellent work and continue to support the growth and development of affordable/small-scale rental units through more robust and meaningful engagements. Together we are stronger.

Kecia Rust, housing specialist executive director and founder of the Centre for Affordable Housing Finance in Africa

South Africa’s residential property sector is a significant contributor to the national economy, supporting economic growth and job creation, contributing to vibrant cities, hedging against economic downturns and building the asset wealth of households.

While the high-value market is strong, well governed and an important contributor to municipal health, the same cannot be said for the lower value market, which includes more than 4 million subsidised houses developed by the national housing programme.

At the heart of this are policy constraints that limit market activity among lower value, government-subsidised units, a backlog in the awarding of title deeds and an unaffordable transfer system that incentivises informal transactions.

In 2024, lower income South Africans are not able to benefit from their properties in the way that higher income South Africans take for granted.

May 2025 be a year in which all this changes – the title deeds backlog is resolved and the asset value of housing is equally available within a working residential property market.

Zama Mgwatyu, DAG programme manager

As cities continue to deal with the challenges of urbanisation, access to affordable housing opportunities remains one of the biggest challenges they need to address.

Amid this, we have seen micro developers addressing that need, without any support from the government.

Now that there is emerging support from the City of Cape Town municipality and other role players, I challenge all micro developers operating in the CoCt and other metros across the country to take 2025 as a year of scaling up the good work they have been doing for the past five years or so.

As DAG, we will continue to play our role in levelling the playing field as we recognise micro developers’ role in addressing Sustainable Development Goal (SDG) 11.

Let’s all treat 2025 as a year of collaborations, action and nation-building towards sustainable human settlements.

* SDG 11, aka “sustainable cities and communities”, is one of the 17 goals established by the UN General Assembly in 2015. The goal’s mission is to make cities and human settlements inclusive, safe, resilient and sustainable.

* Mgwatyu was this year’s global winner of the IHS Alumni Impact Award which showcases and supports worldwide initiatives and projects of IHS alumni making an impact on the community. It celebrates these change makers.

Crystal West, programme manager at Development Action Group and DAG representatives at the Cape Crisis Committee dealing with transport issues

I dream that 2025 will be marked by season-shifting breakthroughs for thousands of households living in insecure tenure, inhumane and undignified homes.

For many practitioners in our sector, as in the parable of The Star Thrower, we face the seashore of millions of washed-up starfish.

The enormity and scale of the devastation threatens to immobilise us as we stand and wonder how our little actions could possibly make an impact.

In fact, it is these little actions that will turn the tide.

I dream that historical injustices are addressed through collaborative engagements that create spaces for imagining new possibilities and create innovative systemic solutions.

I dream that 2025 is the year we demonstrate the incredible and life-changing power of the collective.

Glen Jordan, co-founder of Empowa, a company that addresses the global housing shortage through its finance model

In 2025, I ardently wish for decision-makers in financial institutions and development finance institutions to recognise a crucial reality: more than 85% of the market across Africa earns income informally.

Consequently, traditional mortgage products are not fit for purpose. This acknowledgment is essential for the provision of green, affordable housing.

My hope is that the leaders will not only accept the fact but also embrace innovative thinking and cutting-edge technologies needed to address the challenge. By doing so, we can co-create financial solutions that cater to the needs of capital and the needs of the informal sector, thus expanding opportunities for investment, homeownership, decent living conditions and financial stability.

The shift is vital for unlocking the potential of Africa's diverse and dynamic economies. Let us work together to make the vision a reality.

Vusi Vokwana, founder of Kasi Catalyst, which helps drive and facilitate outside big investment in the townships

As 2025 draws near, I would like to manifest a few idealistic achievements for the new year in the affordable housing sector, specifically in townships.

Affordable housing is a basic human right. We need to change how we look at the challenges and implement solutions.

Extortion is a huge problem in marginalised communities; let us solve it by reducing the obstacles to finance and job opportunities.

Construction profits are disbursed along apartheid colour lines. Black construction companies are restricted to work that requires a wheelbarrow.

Access to title deeds is also a fantasy for the average homeowner. The most devastating legacy of the past is the mother erven* debacle within the municipal debt calculation algorithm.

Next year, let’s look at the systemic barriers in the affordable housing sector and strive to reduce the inequities.

* The mother erf is the erf subdivision based on the Surveyor General Diagram. During apartheid, townships were never intended to be privately owned properties, so they weren’t usually subdivided into erven. Services are provided for the mother erf and then charges are divvied accordingly. When someone wants to purchase the property on a portion on the erf, especially if it is a commercial property. Then, because a rates clearance is required for the transfer and the communal water meter resides on the portion being transferred, the new owner (who was the tenant) has to cover the costs of all the outstanding arrears on the mother erf. The property can be sold for R3 000, for example, but the rates clearance can be R450 000. This sets the new property owner back substantially because they will never be able to raise capital for that, which makes property ownership more difficult.

Eddie Andrews, City of Cape Town’s deputy mayor and mayoral committee member for spatial planning and environment

As we look towards 2025, I am immensely optimistic about the future of affordable housing in our city. While challenges remain, I believe, with the right steps, we can continue to significantly improve the sector and address the housing challenges facing our communities

A key focus is our Small-Scale Rental Unit (SSRU) programme. Practical measures, such as amendments to the municipal planning by-law serving before council, can unlock opportunities. However, effective communication is crucial.

Too often, communities are unaware of programmes that support SSRU development, funding opportunities and other resources. My wish for 2025 is that we improve outreach, provide clearer information and engage directly with residents to ensure they can access the resources.

Collaboration with the private sector is also essential. Private investors and developers bring funding, innovation, expertise and mentorship, which is often lacking in the sector. Access to such social capital can help individuals and communities thrive.

By working together, we can create sustainable, affordable housing solutions that meet the needs of all Capetonians.

Ultimately, my vision is to see the sector thrive, with SSRUs as a key component of this.

The initiative has the potential to transform lives and communities. If we can scale it effectively, it will play a central role in solving Cape Town’s housing crisis.

David Gardner, Programme Manager: CoCT Small-Scale Rental Unit Mayoral Priority Programme

I wish for 2025 to produce ever-stronger partnerships between the CoCT, private, NPO and community organisations.

This is the foundation for the continued co-development, testing and implementation of solutions that will incentivise, guide and support the growth of the small-scale rental sector.

We hope to see the positive impact of the implementation of the new Municipal Planning By-law, that will create a new platform for tens of thousands of Cape Town’s property owners to realise the real value of their properties.

I hope that the partnerships and new property rights encourage thousands of home owners, micro- and small developers to dream of, design, get financed, obtain City approval and build strong, sustainable, comfortable, affordable and secure rental developments for tens of thousands of households that don’t have adequate housing.

But mostly, I wish that all the combined work, investment, private initiative and construction build a more dense, resilient, equitable and economically efficient city that benefits all its residents.

Deon van Zyl, Western Cape Property Development Forum chairperson

Deon van Zyl, the chairperson of the Western Cape Property Development Forum.

The lack of economic growth, coupled with property inflation, requires us all to seriously consider affordability in housing, which, by default, means the local, regional and national government needs to seriously look at land stock.

We recognise that the City of Cape Town is trickle-flowing this into the market, but we call on other municipalities to do so as well.

We also need to look at creative financing. With land and finance, many more residential developers would be putting up their hands for this market. We further trust that the Treasury will ensure that subsidies are protected and increased to reflect inflation in development.

We need to look at more intimate engagement with ratepayer associations to prevent Nimby (not-in-my-backyard) reactions to the development opportunities. Society, as a whole, needs to step up to address affordable housing and accommodation.

Nomfundo Molemohi, uMaStandi Portfolio Manager: Eastern and Western Cape

UMASTANDI has been at the forefront of engaging and advocating for the small-scale rental sector to receive the support it deserves from our government. As the first financial institution to approach the mayor’s office with a request for sector-specific support, we’ve been steadfast in our commitment to ensuring developers have the tools to succeed.

As we continue the journey, we eagerly await the revised by-laws, which are anticipated to be promulgated in the first quarter of next year.

The changes hold the potential to transform the landscape, enabling developers to fast-track the construction of compliant, affordable and high-quality housing for their communities.

The progress will bolster businesses, attract much-needed investment and help the government fulfil its constitutional mandate to provide decent housing in townships.

The groundwork has been laid; now, we look to 2025 with hope for meaningful, lasting change in the sector.

Dylan Walls, COO of Bitprop

In 2025, Bitprop is very hopeful that the City’s hard work on the by-law changes is finally passed and homeowners across large parts of Cape Town are able to consider and implement backyard developments in a more sustainable and inclusive manner.

We also hope that these steps by the City encourage private institutional capital to consider township investment.

There is massive impact and economic growth to be created with investment into sustainable, controlled backyard rental development and we need more large scale investors to step up and be a role model for others in the future.

* Bitprop invests in rental units in low-income areas, providing an asset and income stream for local landlords and a return on investment for investors.

* This article first appeared in the Weekend Argus

* Vivian Warby is a writer and editor