The urban housing market has shifted: now policy must follow

As urbanisation increases, South Africa’s cities face a housing shortfall of 2.2 million units. The traditional supply-driven model of large-scale, peripheral developments has often resulted in poor value for money and high transport costs. However, high demand for low-cost housing is driving a burgeoning market in well-located backyard apartments and small-scale rentals. These high-density developments offer economic returns and well-located housing. How must policy be reimagined to support this demand-led, "lots of small" approach and leverage the value of cities for inclusive growth?