Cape Town officials are releasing city-owned land and strengthening public-private partnerships to accelerate the development of affordable housing [1, 2].
The initiative seeks to resolve a systemic shortage of low-cost residences in a city where demand continues to outpace supply. The scale of the crisis has made housing a central pillar of Mayor Geordin Hill-Lewis's 2026 reelection campaign.
Speaking at the Housing Investment Connect Conference in June 2026, city delegates outlined plans to leverage private investment to close a housing backlog of approximately 600,000 units [1]. The city aims to reduce the reliance on state funding by providing land to developers who commit to affordable price points.
"We will ramp up efforts to provide more affordable housing and curb electricity price increases if we win a second term," Hill-Lewis said [2].
The push for investment comes as the city faces significant humanitarian challenges. Reports indicate that 20% of Capetonians, or one in five residents, still live in shacks [3]. This prevalence of informal settlements underscores the urgency of the city's current land-release strategy.
However, the administration's track record is under scrutiny. While city officials describe their actions as decisive, political opponents argue the progress is superficial. Brett Herron, the Good Party secretary-general, said the constitutional court has exposed the city's empty affordable-housing promises [4].
This disagreement highlights a divide between the city's strategic announcements and the lived experience of residents in informal settlements. The administration maintains that the new partnerships will provide the necessary scale to move beyond previous limitations, a claim that will be tested as the 2026 election approaches.
“One in five Capetonians still wakes up in a shack.”
The shift toward public-private partnerships indicates that Cape Town is moving away from a purely state-led housing model to address its massive backlog. By treating affordable housing as a viable investment vehicle rather than just a social service, the city hopes to attract the capital necessary to house hundreds of thousands of residents. However, the tension between the mayor's campaign promises and the constitutional court's critiques suggests that legal and political hurdles may persist regardless of land availability.
