South Africa faces a housing backlog of at least 2.6 million units 12 million people. State supply of new, subsidized housing has declined over the past decade and government supply has declined housing policy Is being transferred.
It sees the private sector becoming the main provider of “affordable housing”. market, According According to the Banking Association of South Africa, there are households earning up to R34,400 gross income (US$2,111) per month. Yet most residents of South African cities earn far even less than that. (The national average household income in 2023 was R7,980 or US$490.) There is therefore a need for more affordable housing.
We are housing and urban scholars south african And austria Universities that have conducted extensive research on how housing ideologies, policies and practices shape urbanization.
In this article we draw on research into social rented housing south african in cities and ViennaAustria. We are not suggesting that policies should be identical. After all, these are very different places. But it may be useful to look side by side.
Vienna is often considered the capital of social housing. About this 43% of the Viennese housing stock There is state-subsidized rental housing, including municipally owned flats and apartments operated by limited for-profit housing associations.
South African cities have seen large-scale introduction of state-sponsored, low-density ownership housing, but housing backlogs and informality continue to grow. Delivery of subsidized rental housing and high-density, mixed-income apartments remains slow.
We believe that Vienna's social housing policy has potential for South African cities in at least three aspects:
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Sustained political commitment – policies, laws and regulations supported by substantial financial and institutional investment
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an active and market shaping conditions
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Making social housing part of the urban fabric and public consciousness.
sustained political commitment
Vienna's large social housing stock is the result of a century of political commitment and investment in housing as a human right, recognizing its powerful role in improving workers' well-being and building integrated cities.
For the city, housing was never just a revenue-generating asset. dating back Red Vienna period (1919–1934)interrupted by Austro-fascism and this Nazi regimeThe social democratic city government has made housing central to its urban welfare politics. Particularly subsidized rental housing.
Housing projects were considered part of the social infrastructure, along with public facilities (clinics, transport, education), outdoor spaces, social facilities (crèches, laundries, libraries), arts and employment opportunities.
Colloquially called “people's palaces”, social housing apartment blocks symbolize a political promise to provide a high quality of life to working-class people.
The city planned subsidized rents in all areas to promote social mixing.
Active and market shaping state
To translate this political commitment into results, a capable and proactive state was required. It called for a government that would shape land and property markets to maximize public value.
Vienna has played an active role in social housing delivery, whether as direct provider, regulator or partner. And, unlike many other cities in Europe, it Never sold your municipal housing stock At the end of the 20th century.
The city currently manages 220,000 rental apartmentsAccommodates one quarter of the total urban population. it makes vienna largest public landlord Of social housing in Europe. After no expansion for some time, it was decided a decade ago restart investing In rental stock.
A key element of its policy is the use of private capital and third sector (neither state nor profit-driven) organizations to promote the delivery of affordable rental housing. So-called limited-profit housing associations – private, cooperative, or nonprofit entities – offer apartments at cost-based, regulated prices.
These organizations plan, develop and manage social housing housing and are bound by the Austrian Limited-Profit Housing Act. This law states that any surplus must be reinvested in the construction of new rental housing.
Regulation includes rental caps, indefinite-term contracts and quality assurance requirements.
of the city Fund for housing construction and urban renewal There is a professional property management company, governed by a trust headed by the city council. It buys, manages and releases land for state-subsidized housing construction and subsidizes urban renewal projects. Active land management and a social housing zoning law allow affordable land to be designated for state-subsidized housing.
Working closely with city departments, particularly planning and infrastructure, the unit acquires, prepares and releases land for social housing.
Another important role is to organize developers' competitions, which act as a quality assurance mechanism. Interdisciplinary juries evaluate competing proposals according to four criteria: economy, architecture, ecology and social sustainability. Development rights are then awarded to the highest quality project consortium.
Financing is a mix of federal and regional subsidies, loans and determined contributions. For example, the housing subsidy levy is a payroll-based contribution that is shared equally between employers and employees.
social fabric of social housing
Social housing in Vienna is the center of the overall housing system rather than a safety net for the poorest. The income threshold has been set to cover a large section of the population and support social mixing.
Barriers still remain for newcomers: they must live in the city for two years before they can access municipal housing. But renting remains a secure form of tenure that is widely accepted by the population.
Quality maintains this broad-based appeal. Social housing provides attractive, well-designed living environments.
The process draws on a deep pool of expertise within the municipal administration and among non-profit housing providers, planners, academics and independent consultants.
Social housing is spread throughout Vienna rather than pushed to the periphery. People from different backgrounds live together.
Ideas for South Africa
The Vienna experience provides a useful reference point for considering how social housing delivery might work in South African cities.
First, social rental housing must be understood as an urban and economic policy. Its benefits go beyond providing shelter, as it can make cities more egalitarian, inclusive and productive places. It can improve the welfare of workers, reduce poverty and promote socio-economic mobility.
Thus, it deserves greater political commitment and resources from all sectors of government.
Secondly, to achieve results the state needs to actively shape property and land markets for public value. The City of Vienna has never focused on enabling private sector development. It shows what municipalities can achieve when they strategically use their assets, regulatory powers and resources to capture public value from private investment.
Third, there is the importance of integrating social housing into the social fabric of the city.
The key thing is to appreciate social rented housing as a shared wealth. Not to idealize personal property ownership. The public needs to understand the benefits of well-located, high-density, subsidized rental housing.
It also requires harnessing technical, financial, organizational and other expertise across all sectors and locations in South Africa. Residents, housing justice movements, and civil society organizations all have something to offer.