Unpacking the housing supply crisis: the gap market dilemma

Renier Kriek

South Africa has a housing supply backlog of at least 2.2 million units, with a significant shortage in the affordable housing or “gap market”, according to a recent study by the Centre for Affordable Housing Finance (CAHF). The gap housing market is generally considered to be households earning too much to qualify for Reconstruction and Development Programme (RDP) housing but too little to obtain traditional bank-financed homes in the open market. 40% of consumers fall into the RDP housing category (household incomes below R3 500 per month), and the wealthiest 30% of households are well-served by the open housing market. Massive demand The gap market is the middle 30% of consumers where the supply of housing stock is extremely low and even declining despite massive demand. A market design…

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Star South Africa (Digital) - 1 Issue, 2025-03-14

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