As the 2026 State of the Nation Address (SONA) approaches, housing advocacy groups are sounding a desperate alarm, warning that South Africa’s property and municipal systems have reached a definitive breaking point.

The Development Action Group (DAG) and Ndifuna Ukwazi in Cape Town have called for a radical shift from political “diagnosis” to actual “delivery,” as spatial inequality continues to define the lived reality of millions.

South Africa remains one of the world’s most unequal societies, a fact DAG notes is driven by a housing system increasingly unable to meet the needs of those seeking safe and dignified lives.

“SONA cannot continue to speak past the lived realities of communities,” says Zama Mgwatyu, Programme Manager at DAG.

He highlights that while communities navigate collapsing municipal capacity, unsafe living conditions, and deepening poverty daily, these issues are rarely met with sufficient funding or accountability at the national level.

The crisis in Cape Town is particular different, where recent media reports indicate that residents are being priced out of their own city by a fast growing tourism sector and the sprouting of short-terms rentals. 

DAG stresses that the housing crisis now extends beyond the poorest households to working-class families who earn too much for subsidies but too little for formal markets. Statistics from 2025 and early 2026 suggest that nearly 70% of residential units in the city center are now dedicated to short-term letting platforms like Airbnb. 

“Long-term rental units have been converted into tourist accommodation, removing units from the housing supply, raising rental costs and pushing out locals from neighbourhoods where they can no longer afford to live,” says Jens Horber, a researcher at Ndifuna Ukwazi.

Reports highlight cases like Fundisa Loza, a call center worker who, despite working in the city, cannot afford the average R10,000 monthly rent for a one-room flat on her R8,400 salary, while nearby Airbnbs command R1,500 per night.

Ndifuna Ukwazi recently reflected on the one-year anniversary of the Tafelberg matter being heard in the Constitutional Court, noting that land justice remains central to the country’s democracy.

The organisation argues that unregulated growth in speculative investment sends a clear message to the working class, that loudly reads, “anyone but you belongs in the city you helped build.”

“Justice in this city has moved slowly not because the harm is unclear, but because redistribution has been consistently deferred,” the organisation stated.

Mpho Raboeane, Ndifuna Ukwazi Executive Director, adds that,

“We are in a housing crisis. We are seeing a dwindling number of social housing provisions. The answer to this is more supply of housing that is truly affordable.”

To address this, Ndifuna Ukwazi is calling for the social housing budget to be increased from its current 2%, for the implementation of tax breaks for affordable developments, and for public land to be released at a R1 nominal value.

DAG echoes these sentiments, arguing that SONA 2026 must move beyond describing challenges and commit to clear, measurable action, including ring-fenced funding and a renewed focus on fixing local government.

As Mgwatyu concludes, “partnership without accountability is meaningless. Civil society stands ready to support the state, but communities cannot wait any longer for consequences when delivery fails.”

lilita.gcwabe@inl.co.za

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