Affordability of housing in the gap market: a case of Walmer link in Port Elizabeth, South Africa

The new dispensation, after 1994, in South Africa has been criticised a lot for not being able to satisfactorily achieve its election promise of redistribution and poverty alleviation. While success has been noted in the provision of low cost housing and subsequently home ownership for lower income earners, housing demand continues to be a challenge in the delivery capacity of housing for most South Africans. The people most excluded from homeownership include the public sector employees and laborers who face common, but different constraints. These people are classified as middle-income earners, they are either earn too much to qualify for a housing subsidy (RDP house), or too less to afford a house in the prime market. These people are referred to as the “gap market” because they fall with the gap of high and lowincome earners. Adopting a qualitative research method, survey questionnaire were sent to selective respondents involved in the development of affordable housing in the gap market in Walmer Link, Port Elizabeth, Nelson Mandela Bay Metropolitan area. This research sought to assess the affordability of housing in gap market, by understanding the challenges faced by the housing market in addressing the needs of the gap market in Walmer Link. Obstacles that hinders closure in the gap housing delivery, such as affordability, over indebtedness, poor credit ratings and inadequate supply for affordable housing in the gap market were identified during the research. While these obstacles show little indication of abating, this research’s findings and recommendations suggest new pathways for formulating new housing policies that address the housing backlog in the gap market. This also suggests that government policies are critical in developing a healthy and inclusive housing market