Housing development in South Africa has reached a critical juncture. With the country facing simultaneous pressures from economic recovery efforts and steady population growth, local municipalities have become central players in addressing the shelter backlog.
This year has seen notable shifts in how these projects are conceptualized and executed, with several regions standing out for their approach to affordable, sustainable housing.
Based on data from the Department of Human Settlements and various urban planning reports, ten municipalities have distinguished themselves through their housing initiatives.
What makes these areas worth examining is not just the number of units being built, but how they are tackling the deeper issues of urban integration, affordability, and long-term sustainability.
1. City of Cape Town Metropolitan Municipality, Western Cape
Cape Town has taken an interesting approach with its Leeuloop Precinct Development, launched earlier this year. The project includes over 840 units, with 350 designated as affordable housing mixed alongside market-rate apartments in two high-rise buildings.
The green building certification is a practical consideration given rising utility costs, though whether these savings materialize for residents remains to be seen.
The municipality has been pushing inclusionary zoning policies that require developers to include affordable units in well-located areas near employment centers like Bellville and Century City. Provincial data suggests formal dwelling rates have reached 85 percent in the metro, though informal settlements still persist in several areas. The balance between high-end development and affordable housing continues to generate debate among urban planners here.
2. City of Johannesburg Metropolitan Municipality, Gauteng
Johannesburg’s housing strategy has leaned heavily on repurposing its industrial past. The Lufhereng Social Housing project represents one of the larger subsidized developments currently underway, with Cosmopolitan Projects managing the construction. The municipality has been concentrating efforts on mixed-use developments in areas like Soweto and Braamfontein, where rental yields have attracted private investors despite the challenges of retrofitting older buildings.
The title deed program has processed documentation for over 10,000 households, which matters because secure tenure affects everything from access to credit to willingness to invest in property improvements. Public-private partnerships have been essential here, though coordination between different stakeholders has not always been smooth.
3. eThekwini Metropolitan Municipality, KwaZulu-Natal
Durban’s housing expansion tells two different stories. While coastal areas like Umhlanga and Ballito continue developing higher-end estates, the municipality has been directing resources toward affordable clusters in southern suburbs. The Hospital Street initiative plans 1,056 units across 53 blocks, designed with families in mind and positioned within reasonable distance of the beachfront and port areas.
The municipality has maintained delivery rates exceeding 5,000 units annually. This productivity stems partly from streamlined approval processes, though community consultations have occasionally slowed timelines when concerns about displacement arise. The connection between housing development and the tourism economy here creates unique opportunities but also constraints on where affordable housing can be situated.
4. City of Tshwane Metropolitan Municipality, Gauteng
Pretoria’s approach has been methodical. The Fochville Extension 11 project, developed with neighboring West Rand districts, allocates 2,198 residential units. Of these, 258 fall into the social housing category, targeting households earning between R3,500 and R40,000 monthly. Infrastructure upgrades scheduled for completion this year should make properties under R1 million more accessible to first-time buyers, assuming interest rates cooperate.
Tshwane’s accreditation for managing human settlements grants means the municipality handles funds directly rather than routing them through provincial channels. This has improved efficiency, though it also places greater administrative burden on local capacity. The emphasis on public transport connectivity and green spaces reflects planning priorities, even if implementation sometimes lags behind intention.
5. Ekurhuleni Metropolitan Municipality, Gauteng
East of Johannesburg, Ekurhuleni has been transforming former mining land into residential developments. The Milkwood City proposal covers 3,100 hectares and integrates affordable housing with environmental considerations. Phases scheduled for 2025 will test whether the sustainability features prove viable at scale.
Inclusionary policies here require developers to include affordable units in larger projects, which has created more economically diverse neighborhoods than typical suburban developments. The Human Settlements Department reports 90 percent subsidy uptake in the municipality, suggesting effective outreach to qualifying households. The challenge moving forward involves maintaining infrastructure as these new communities mature.
6. Nelson Mandela Bay Metropolitan Municipality, Eastern Cape
Port Elizabeth has focused its housing efforts on upgrading existing settlements while adding new stock. Developments in Motherwell and Bethelsdorp offer homes averaging R400,000, with design modifications to address coastal climate concerns. Energy-efficient features make practical sense given electricity costs, though upfront expenses can strain budgets.
Provincial allocations for 2025 prioritize serviced sites, with 6,624 planned across the metro. Flood-resistant infrastructure has become non-negotiable given recent weather patterns. The municipality involves community members in planning phases, which has improved beneficiary satisfaction but also extends project timelines. Informal dwelling numbers have dropped approximately 15 percent, though absolute figures remain substantial.
7. Buffalo City Metropolitan Municipality, Eastern Cape
East London’s housing development has concentrated on the Mdantsane area, where 492 social housing units are funded for 2025. Partnerships with the Social Housing Regulatory Authority have accelerated rental projects aimed at the middle-income gap, households earning too much for subsidized housing but not enough for bond financing at current rates.
Governance reforms implemented over the past two years have reduced approval bottlenecks, contributing to annual delivery of roughly 4,000 units. The municipality has attempted to incorporate local architectural elements into new developments, though results vary by project. Buffalo City represents the Eastern Cape’s most active housing municipality, which is significant given the province’s historical challenges with delivery.
8. Gert Sibande District Municipality, Mpumalanga
This inland district has pursued housing development differently than urban metros. Projects in Kwandokuhle and Willow Creek, located in Ermelo and Govan Mbeki municipalities, will deliver 852 units this year. The emphasis on serviced stands near agricultural areas reflects the district’s economic base.
The target of 3,149 sites across the district indicates strong performance relative to provincial allocations. Capacity-building support from the national department has addressed some of the technical gaps that previously hampered rural municipalities. Whether these developments successfully stem urban migration depends on employment opportunities developing alongside housing, which remains uncertain.
9. Mangaung Metropolitan Municipality, Free State
Bloemfontein’s housing strategy has prioritized regularizing existing settlements. With full accreditation for human settlements administration, Mangaung is processing title deeds for properties dating to before 1994, providing legal tenure to longstanding residents. The 2025 allocation funds approximately 2,000 units along with community facilities including clinics and markets.
Data-driven audits have kept spending aligned with budgets, contributing to formal housing coverage of 83 percent within the metro. This percentage places Mangaung ahead of many comparable municipalities, though the remaining informal settlements concentrate in specific neighborhoods requiring intensive intervention. The municipality serves as an example of steady progress rather than dramatic transformation.
10. Stellenbosch Local Municipality, Western Cape
Stellenbosch presents an unusual case of a smaller, high-property-value municipality actively pursuing affordable housing. Inclusionary zoning policies adopted in 2024 are driving 2025 deliveries, with approximately 500 units planned. Housing market studies have guided where affordable units can be integrated without destabilizing the area’s character, which matters considerably to existing residents.
The evidence-based spatial planning framework has attracted private investment, though critics argue the pace remains too slow given demand. Stellenbosch demonstrates that boutique municipalities can contribute to affordable housing, but scale limitations mean the impact on regional housing needs stays modest.
Conclusion
These ten municipalities illustrate different approaches to South Africa’s housing challenge. The variation matters because no single model fits every context. Urban metros deal with density and land costs. Rural districts balance housing with economic development. Coastal areas factor climate risks into planning.
Funding constraints persist across all municipalities. Land availability, particularly in well-located areas, continues limiting how much affordable housing can be built where it is most needed. Bureaucratic processes, despite improvements in some areas, still slow project timelines.
For households seeking homeownership, the Finance Linked Individual Subsidy Programme provides up to R150,000, which can bridge the gap between savings and property prices in certain markets. Investors looking at rental properties in these metros have seen yields above 10 percent in some cases, though returns vary significantly by location and property type.
The housing projects underway in 2025 represent incremental progress rather than wholesale solutions. They matter because they provide concrete shelter to families who need it, and because they test approaches that might be refined and scaled. Whether this momentum continues depends on sustained political will, consistent funding, and continued collaboration between different levels of government and private developers.