ABSTRACT
South African subsidised housing is underpinned by a three-pronged welfarist development paradigm aimed at meeting housing demand, creating jobs and stimulating economic development. To do this, the state subsidises the supply of housing targeted at the poorest of poor people. However, over the years, this practice has created the unintended consequence of exaggerated demand for low-cost housing. This chapter argues that the current subsidy criteria promote double-dipping into state resources, perpetuating dependency, instead of alleviating poverty. Using a case study in northern KwaZulu-Natal, the chapter outlines the current housing subsidy selection criteria and concludes with the proposition that for the state’s redress policy to serve its (original) intended outcomes, dependency on the state needs to be systematically reduced by shifting from a supply-driven subsidy to a demand-driven subsidy. It argues that this can be done by providing more leverage for poor people to address their housing needs.
