Reports Database:
Cost-Benefit Analysis: Social Rental Housing and RDP Housing

Cost-Benefit Analysis: Social Rental Housing and RDP Housing

South Africa has various state-supported housing programmes, of which RDP housing (currently termed “BNG” housing), and more recently Social Rental Housing (SRH) are significant components.

Although over 2 million houses have been provided to date through the RDP housing programme, the programme poses several challenges, not least being the implications for the future sustainability of cities and their municipalities in South Africa.

SRH is seen as an alternative to RDP housing. Although the observed initial construction costs of SHR are higher, so too are the long term benefits.. SRH addresses an important demand and income segment within the housing sector and market in South Africa.

This report contains the results of a Cost Benefit Analysis (CBA) undertaken to compare SRH (as the potential investment or “project case”) with RDP housing (as the status quo or “base case”). The objective of this analysis is to assess the relative benefits to society in the provision of SRH and RDP housing, and takes into account all costs and benefits to society over the life time of the housing.