Sizing the market for Housing Micro-Finance in South Africa: Report for the Rural Housing Loan Fund

Household led investment by low-income households in South Africa, defined as those earning less than R15 000 per month, is estimated to be more than R20 billion per annum. While this is significant, there is clearly still much room for growth given that around 8 million households in this market have a visible housing need – either their dwelling requires improvement or the household has inadequate access to services.

Given the role housing microfinance can play in the incremental housing process, Eighty20 and the Centre for Affordable Housing Finance in Africa (CAHF) were commissioned by the Rural Housing Loan Fund (RHLF) to quantify the market for housing microfinance and better understand the incremental housing process more broadly. Our study found that household-led investment is seriously constrained by a range of factors across the delivery chain – from the availability of building materials, skills, advice as well as secure title. At the same time, the policy environment, while stimulating housing investment for households lucky enough to get a subsidy house, hampers the willingness to invest on the part of households who regard housing delivery as the primary function of the State. These factors and more are explored in detail in the research report.

To access a copy of the report, click here.

This study utilised a mixed method research approach combining survey data analysis and primary research, both quantitative and qualitative. See more of our research here or read more about what we do here.