Inclusionary housing policy and practice in South African cities: planning as a spatial transformation tool

Abstract Globally, housing forms an integral part of accessing the wide range opportunities that cities offer, however, inequality can be exacerbated when significant segments of the inhabitants are excluded from the real estate market or through inaction by the state. The need for affordable housing in cities with hyper-property markets is of global concern for public sector authorities that are pursuing goals of socially just and economically inclusive cities. In the global south, inclusionary housing policies and associated practices have emerged as important tools to increase access for those excluded from the opportunities available in towns and cities. In South Africa, the post-1994 democratic state has continued with the apartheid era practice of providing subsidised housing for the majority urban residents on the outskirts of towns and cities, thereby further entrenching poverty traps and racially based separate developments. Contrary to practice, the state’s well-documented policy position is to reverse the legacy of apartheid through spatial transformation so that cities and towns become economically more inclusive and socially just. It is argued that this requires prioritising the provision of affordable housing in urban centres of towns and cities that offer meaningful working, residing, shopping, recreational and other social opportunities. Although inclusionary housing policy has emerged internationally as an important mechanism to spatially transform urban areas, this forms only one component of a wider range of other possible public interventions. These framework mechanisms could include broader housing development policies, legislation and programmes as well as the urban development policies, spatial planning and land use management practices and incentives. Other incentives that can be used as leverage include the use of publicly owned property (land and buildings), capital infrastructure and development incentives. The public sector can offer both direct and indirect financial assistance and tax incentives to support an inclusionary housing policy. Critically, this should be contingent on the public sector understanding the feasibility, risk and benefits associated with housing projects pursued by private sector real estate developers.