South Africa has a population of over 64.15 million people, with black people making up 81.4%, coloured people at 8.2%, whites at 7.3%, and Indian/Asian at 2.7%. According to a recent study by the Centre for Affordable Housing Finance (CAHF), the country is facing a housing crisis.

RDP HOMES

The report states that about 40% of consumers in South Africa fall into the RDP housing category with a household income that is below R3,500 per month. One of the issues stated yet fixable relates to government subsidies and offering the First Home Finance (FHF) subsidy to subsidise affordable first-time home ownership. This means that the cash grant is lower the higher the household income becomes. 

UNCLAIMED

However, the millions of rands for subsidies are left unclaimed due to systemic barriers and a lack of awareness. This is according to a statement by Renier Kriek, who is the managing director at Sentinel Homes. "We need to lower transaction costs for investors to take chances on consumers who are currently deemed too risky due to South Africa's high tenure security environment," he said in the statement. "This way, more people can enter the formal housing market, even if they cycle in and out multiple times over their lifetimes. Over time, this process can help house everyone."

HOMELESSNESS

Due to inequality and poverty, Stats SA reported that the number of homeless persons in South Africa has increased significantly. The official count was 13,135, but by 2022, the numbers had quadrupled, reaching more than 55,719, men making the majority at 70.1%.