“Cape Town’s rising residential property prices and rental costs are placing increasing pressure on working-class families, young professionals and lower-income households, according to Build One South Africa mayoral candidate Roger Solomons. The debate has renewed calls for faster affordable housing delivery, better use of public land and residential developments that allow more people to live near jobs, transport and essential services.”
Introduction: Housing affordability becomes a major urban challenge
Cape Town’s residential property market is facing renewed scrutiny as rising housing costs make it increasingly difficult for many residents to secure homes within reach of their workplaces, schools and essential services.
The issue has attracted fresh attention following comments by Build One South Africa’s Cape Town mayoral candidate, Roger Solomons, who warned that the city’s housing market was increasingly excluding ordinary residents. His concerns focus on working-class households, young professionals and lower-income families who are struggling to afford homes in the suburbs while rental prices continue to put pressure on household budgets.
Housing affordability is an important issue for South Africa because access to a secure home influences employment opportunities, education, transport costs and the financial stability of families. When suitable accommodation becomes too expensive near economic centres, residents may be forced to move further away, increasing commuting times and transport expenditure.
Consequently, Cape Town’s housing debate extends beyond the price of individual properties. It raises broader questions about urban planning, the supply of affordable homes, public land management and whether economic growth is benefiting residents across different income groups.
Rising property prices put pressure on households
Cape Town remains an attractive destination for homebuyers, investors and people relocating from other parts of South Africa. However, strong demand for residential property can create affordability challenges when the supply of appropriately priced homes fails to keep pace.
Property costs vary considerably across the metropolitan area. Homes in sought-after coastal neighbourhoods and established suburbs may command prices that are beyond the reach of households earning modest incomes. Meanwhile, lower-priced properties can involve compromises concerning distance from employment, transport availability, infrastructure or access to services.
Recent reporting has illustrated the scale of the problem. Cape Town Etc reported that residential purchase prices in the city increased by approximately 23% after inflation between 2010 and 2024. It also highlighted pressure in the rental market, with average Western Cape rents rising by 9.7% year on year to June 2026, according to the PayProp Rental Index.
These figures illustrate why households can struggle even when their incomes increase. Housing expenses compete with food, electricity, transport, healthcare, school costs and other essential spending. A family that spends a growing proportion of its income on rent or bond repayments has less money available for savings and emergencies.
First-time buyers face additional obstacles because purchasing a property usually requires a deposit, legal and transfer-related expenses, and sufficient income to qualify for a home loan. As property prices increase, the amount needed to enter the market can also rise.
Public land emerges as part of the solution
Solomons has argued that public land should be used to serve public needs, calling for faster delivery of affordable housing opportunities and an audit of municipal land that could support residential development. He has pledged to pursue at least 10,000 affordable housing opportunities annually. This is a political commitment rather than a verified delivery outcome.
Public land can be an important resource because land acquisition is a significant component of housing development costs. Where suitable land is already owned by government, municipalities may have opportunities to reduce barriers to development, subject to planning rules, infrastructure requirements, environmental considerations and transparent allocation processes.
Nevertheless, making land available does not automatically create affordable homes. Projects still require funding, construction capacity, water and electricity connections, roads, sanitation and long-term maintenance arrangements.
Authorities must also decide who qualifies for housing opportunities, how affordability will be assessed and whether developments will serve households with the greatest need.
Well-designed housing programmes can include different types of accommodation, such as social housing, subsidised ownership, rental apartments and mixed-income developments. Such a range can help address the needs of people whose circumstances differ considerably.
For example, a household earning a modest monthly income may need subsidised rental accommodation, while a middle-income professional might qualify for a more affordable apartment purchased with a home loan. A single housing model is unlikely to meet every requirement.
Location matters as much as affordability
One of the most significant challenges in Cape Town is the relationship between housing and economic opportunity.
Affordable accommodation far from employment centres may appear cheaper at first. However, transport expenses, long journeys and lost time can substantially increase the real cost of living.
Residents who travel long distances to work may have to leave home early, return late and spend less time with their families. They can also become more vulnerable to disruptions in public transport or increases in fuel and commuting costs.
For this reason, housing policy should consider location alongside purchase prices and rental levels. Homes near employment opportunities, public transport, schools, healthcare facilities and shopping areas can improve residents’ access to services while reducing dependence on expensive journeys.
Cape Town’s continuing discussion about well-located public land reflects this challenge. The issue is not simply whether the city can build more houses, but whether it can provide suitable homes in areas where residents can realistically participate in the local economy.
Higher-density developments, including apartments and townhouses, may provide more housing units on limited land. However, successful projects must also consider building quality, safety, public spaces, infrastructure and the needs of families.
The debate over new residential developments
Cape Town’s property market also illustrates the tension between commercial development and social affordability.
Developers generally need projects to cover land costs, construction expenses, professional fees, financing, municipal charges and other requirements. These expenses influence the final selling price or rental level.
An opinion article published by the Sunday Times on 18 October argued that South African buyers continue to account for a substantial proportion of purchases in some Cape Town central business district developments. Its author cited one development where 272 of 378 units were secured on launch day, with South African buyers representing 80% of purchasers. These are figures supplied in the author’s account of that development, not evidence about the entire market.
This perspective adds complexity to the affordability debate. It suggests that foreign ownership alone cannot explain the problem and that the volume, location and price of new housing also matter.
New apartments can expand the housing supply and provide options for people who cannot afford traditional standalone homes. Smaller units may appeal to young professionals, single-person households and buyers seeking accommodation near employment.
However, additional housing does not necessarily mean housing is affordable to lower-income residents. If new developments predominantly target wealthier purchasers, the city may still lack enough homes that match the budgets of people on modest incomes.
The challenge for policymakers is therefore to encourage development while creating clear mechanisms for expanding access to affordable accommodation.
Government programmes face implementation challenges
Cape Town’s affordable housing debate has also been shaped by legal and administrative questions concerning public land, consultation and spatial inequality.
In October, the Western Cape government and the City of Cape Town faced reporting requirements connected to the long-running Tafelberg affordable housing case. The Constitutional Court proceedings have focused on how authorities address spatial inequality and improve access to well-located housing.
The dispute highlights the importance of accountability when public land and housing policy decisions affect communities.
Authorities need to demonstrate not only that housing strategies exist, but also how those strategies will be implemented, funded and measured. Clear reporting can help residents understand which developments have been completed, which remain under construction and which are still at the planning stage.
Public participation is equally important. Residents, housing organisations and community groups can help identify local needs and highlight risks that might otherwise be overlooked.
At the same time, housing projects must progress through practical planning and approval processes. Delays can increase costs, postpone delivery and leave families waiting longer for accommodation.
Effective implementation therefore requires coordination between national government, provincial authorities, municipalities, developers, financiers and community organisations.
What the affordability challenge means for the wider market
Housing pressures in Cape Town form part of a broader national residential property challenge. Recent reporting based on BetterBond’s October Property Brief has highlighted a widening gap between approved residential building plans and completed homes.
The report said the value of residential building plans passed during the first seven months of 2026 increased by 8.4% year on year, while the ratio of completed residential buildings to approved plans fell by 12%. It also reported that the average home purchase price reached approximately R1.7 million in the third quarter.
These indicators suggest that housing delivery needs attention alongside demand and lending conditions. Approved plans represent potential construction, but residents can only occupy homes once developments are completed and suitable services are available.
If demand remains stronger than the supply of completed homes, prices may continue to face upward pressure. This can make it harder for first-time buyers to save deposits and for tenants to find accommodation within their budgets.
The construction sector’s ability to complete projects efficiently will therefore influence housing availability in the coming months. However, increased supply must include a range of price points if it is to improve affordability across income groups.
The way forward for Cape Town
Addressing Cape Town’s housing crisis will require sustained action rather than a single intervention. Public land audits, better planning, infrastructure investment and partnerships with responsible developers could help increase the number of available homes.
Authorities can also assess whether affordable housing requirements, appropriate zoning and mixed-income developments would expand access without making projects financially unworkable. Any such measures should be transparent, evidence-based and consistent with applicable law.
Housing programmes should publish measurable targets, budgets and delivery timelines. Progress should be assessed through completed homes, actual affordability, occupancy and access to services, rather than announcements alone.
For households, the immediate priority remains finding accommodation that fits their financial circumstances without sacrificing access to work and essential services. For policymakers, the task is to ensure that the city’s economic success does not come at the expense of residents who keep its economy functioning.
Conclusion: Affordable housing is central to the city’s future
Cape Town’s residential affordability debate highlights the difficult balance between property demand, commercial development and the housing needs of ordinary residents.
Solomons’ proposals have brought renewed attention to the use of public land and the need to accelerate affordable housing delivery. However, turning political commitments into lasting improvements will require funding, sound planning, infrastructure and accountable implementation.
Ultimately, a successful housing strategy should allow people across income groups to live in safe, suitable homes within reasonable reach of employment and services. As Cape Town continues to grow, the measure of progress will not simply be the number of properties sold or developments announced, but whether more residents can realistically afford to call the city home.
