Government policies causing a housing crisis in South Africa

• Government policies are indeed causing a housing crisis in South Africa due to policy and regulatory barriers discouraging private investment and limiting the effectiveness of government subsidies.
• The main issue is a market design error, where adverse incentives lead capital holders to invest in anything other than affordable housing, primarily due to high costs associated with evictions and foreclosures.
• Renier Kriek recommends adjusting the regulatory environment to attract private-sector investment and expand supply, potentially allowing more people to enter the formal housing market, although critics may view this as a callous approach.