Insights

Banking on reform: The affordable housing opportunity in OV 2.0

Demand for affordable housing is climbing considerably but supply is not keeping pace. Driven by urbanisation but also by subsidies and new retirement fund policies, demand is particularly urgent in the R7,500-R15,000 a month income bracket. In terms of supply, affordable housing makes up 50% of residential stock but only a small fraction of sales, with strict credit criteria, a shrinking construction industry, rising costs and bureaucratic hurdles impeding progress.

Operation Vulindlela 2.0 aims to address this disparity by focusing on demand-led, partially subsidised housing models and easing supply constraints. Key reforms include unlocking public land, streamlining
planning processes, adjusting subsidies and accelerating title deed issuance. Despite implementation challenges, this reform package aims to align private capital, policy and infrastructure delivery for better housing development.