Thousands of Social Housing Units Stalled Amid Funding and Management Challenges

Stalled social housing projects in South Africa, totaling over 3,800 units, could take years to complete, officials said during a parliamentary briefing on 19 November 2025.

According to Alec Moemi, director-general of the national human settlements department, out of 52 projects managed by the Social Housing Regulatory Authority (SHRA), 10 are on hold or blocked, while 1,291 completed units remain unoccupied.

Social housing caters to individuals earning R1,850 to R22,000 per month, with rental capped at R7,326, and developers receive one-off grants from SHRA. Financial viability is cited as the main reason for delays, with plans to secure additional funding and transfer projects to different developers.

Some stalled projects involve Instratin, a developer previously criticized for mismanagement and maintenance issues. The SHRA intends to conduct a comprehensive review to identify projects that can achieve successful delivery with extra support.

SHRA chairperson Pulane Thobejane emphasized that the new council is addressing a “historical challenge,” while committee chair Nocks Seabi criticized a perceived lack of urgency, urging SHRA to report progress early next year.

MP Zelna Abader highlighted a systemic issue:

“It’s not just a few stalled developments, but a pattern of dysfunction across provinces, developers, contractors, and funding partners … our communities are losing hope.”

The delays underscore structural challenges in South Africa’s social housing sector, with thousands of low- and middle-income families awaiting safe and affordable housing.

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