As South Africa prepares for President Cyril Ramaphosa’s upcoming State of the Nation Address (SONA), frustration is mounting over the government’s failure to address the worsening affordable housing crisis. Industry leaders argue that regulatory red tape and misguided policies are stifling the market, leaving millions without secure housing or the ability to transfer intergenerational wealth.
A Crisis Ignored?
The affordable housing sector has strongly criticized Ramaphosa’s government for neglecting the bottom end of the property sector, affecting tens of millions of South Africans.
“Government has mainly failed in the affordable housing sector because of their obsession with mega projects in the outskirts and not bringing small-scale developers—those actually delivering housing to those left out of the mainstream property sector—along,” said Lusanda Netshitenzhe, CEO of TUHF21.
She pointed to deep demand for affordable rental and ownership options but highlighted regulatory issues that continue to block supply.
“Small-scale developers are inadvertently disadvantaged by regulatory requirements—such as town planning and land use approvals—because they can’t afford the time and costs associated with compliance,” Netshitenzhe added.
The Title Deed Disaster
Housing specialist and executive director of the Centre for Affordable Housing Finance in Africa, Kecia Rust, addressed the president directly:
“Mr. President, get the title deeds right. Another SONA, and there are still millions of South Africans living in homes without title deeds.
“This is a serious problem. Not only does it threaten their security of tenure, but it also means these households—among South Africa’s poorest—can’t use their homes as an inheritance. This completely undermines the intergenerational wealth transfer that the original housing subsidy policy was designed to achieve.
“This is not impossible to fix, but it requires the energy of a national programme, with support and a mandate for action at the local level. Many officials across South Africa want to help their constituents with good services and deliver title deeds. What’s missing is a coordinated effort to tackle the complex legal, infrastructural, and social blockages that have accumulated over the years.
“Presidential leadership on this matter is critical. And, Mr. President, it will profoundly transform South Africa’s property market, giving expression to the original vision of a better life for all.”
Small-Scale Developers Left Out
Zama Mgwatyu, DAG programme manager, argued that as urbanization accelerates, affordable rental housing should be a top priority.
“The White Paper on Human Settlements was gazetted this year. Alarmingly, it does little to acknowledge, incorporate, or strengthen the role of micro-developers in providing affordable rental accommodation in metropolitan areas.
“We call on the President to prioritize innovative support for small-scale rental housing. These developers ease the housing burden in urban areas, introduce black township developers into the property market, and drive township economic growth.”
Unlocking the Market
Associate Professor François Viruly, property economist and director at the Urban Real Estate Research Unit at the University of Cape Town, pointed out that last year, Ramaphosa himself acknowledged that South African households suffer from “asset poverty.”
“One way to fix this is to resolve the issue of the 1.6 million households that received government-sponsored homes without title deeds. These homeowners must receive full legal rights associated with ownership.
“Unleashing property markets is one of the most impactful interventions government can take to create value for lower-income households. But government must also recognize the critical role of small-scale property entrepreneurs in addressing the housing crisis.”
He noted that while the Human Settlements White Paper and Housing Consumer Protection Act have been developed, the government is failing to implement market-driven interventions to close the housing gap.
“The government must go beyond handing out grants and fast-track the delivery of title deeds. Housing can substantially improve household welfare, municipal revenue, and local economic growth.”
A Missed Economic Opportunity
Glen Jordan, co-founder of Empowa—a company that addresses the global housing shortage through alternative finance models—believes Ramaphosa should view affordable housing as a key driver of economic growth.
“Millions of South Africans in the informal sector lack access to mortgage financing, leaving them trapped in inadequate housing.
“By focusing government-backed financing on this sector and embracing alternative credit models, Ramaphosa’s administration can unlock affordable housing development for marginalized communities.
“With the construction sector contributing significantly to GDP, structured affordable housing development could generate widespread economic benefits, increase consumer spending, and reduce inequality—fostering long-term national prosperity.”
Uncertainty in the Property Industry
Meanwhile, Deon van Zyl, chairperson of the Western Cape Property Development Forum, warned that the uncertain political landscape could further hurt investment.
“SONA takes place in the context of a coalition government, where parties have agreed to work together but may not be aligned on policy.
“The property industry needs certainty about the future policy direction. The President must provide clear guidance so that fixed-capital investors can make informed decisions about whether to invest in South Africa.
“The industry requires a clear line of sight on the future.”
Will Ramaphosa Act?
With pressure mounting ahead of SONA, the message from housing experts is clear: urgent action is needed to fix South Africa’s broken housing system. Without meaningful reforms, millions will remain locked out of homeownership, economic opportunity, and secure housing.
Whether Ramaphosa will take decisive steps or continue down the current path remains to be seen.
