How the legacy of apartheid geography shapes housing wealth

Housing wealth accounts for up to 65% of the total assets of the average South African household, yet its potential to reduce inequality is reduced by the persistent "stickiness" of apartheid geography. Using 2008-2017 data, the authors find that over 90% of individuals from marginalised groups remain in areas historically designated for their race, and even those who move to formal urban centres face returns that are deeply stratified by race. As the absolute gap in housing wealth between white and African urban residents continues to widen, the research highlights the emergence of "spatial traps"—where state-provided housing offers physical shelter but fails as a wealth-building asset.