The third annual Residential Investment and Development Summit (Reside) officially kicked off on the 9^th of July 2025 with a powerful, collaborative call from government, industry and finance leaders for public-private partnerships as an essential solution to South Africa’s ongoing housing shortage – and in closing the housing gap.

Johannesburg’s Executive Mayor Dada Morero delivered a keynote address, reinforcing this message by pledging to cut through the housing red tape that has long impeded the rollout of housing solutions. He highlighted that unlocking private sector investment through streamlined regulations and partnerships is vital to providing affordable homes at scale, while simultaneously addressing South Africa’s substantial housing backlog.

Using Johannesburg as a case study, he estimated that the city’s population is at approximately 6.44 million residents with a housing backlog of at least 30 000 units, acknowledging that the municipality cannot solve this backlog alone due to funding constraints.

The City of Johannesburg’s approved housing budget for the 2025/2026 financial year stands at R8.9 billion which Morero stressed is insufficient to meet the population’s housing needs. To make a meaningful impact, the City requires at least R60 billion in funding, he added.

Morero emphasized that opportunities exist for developers and other stakeholders to help address housing needs. To stimulate private sector investment and drive what he termed “a housing revolution”, the City of Johannesburg has committed to reducing bureaucratic hurdles for developers, including shortening the approval process for housing projects to move forward more quickly. He further admitted that the City has been too slow in approving development plans.

“We have made bold statements on housing interventions, but we have also acknowledged that we have been slow, fragmented, and overly bureaucratic,” Morero. “The Reside summit is a critical platform to reset our approach and build the partnerships needed to deliver homes faster.”

The private sector welcomed Morero’s call to action with several developers and financiers expressing their readiness to increase investment in affordable housing projects, providing that regulatory obstacles are eased.

However, Rob Wesselo, Group MD of International Housing Solutions, and Paul Jackson, co-founder and outgoing CEO of TUHF, stressed the importance of the reliable provision of essential services.

Additionally, they raised concerns about the significant increase in Johannesburg’s property taxes since 2010 which has added financial pressure on developers and landlords.

Property tax rates have reportedly risen by over 45% in the past 15 years, substantially increasing operating costs. Furthermore, utility service charges on rental units – often around R2 000 per month on a R4 000 per month rental, further squeeze tenant affordability and complicate the economics of affordable housing development. Both Wesselo and Jackson urged the City to address these issues promptly to foster a more enabling environment for sustainable housing investment.

“This summit is more than a conversation, it’s a catalyst. Solving South Africa’s housing crisis demands shared expertise, shared risk, and shared opportunity – it’s the only path to scale, sustainability, and speed. We appreciate every leader, partner and practitioner, and the many engaged and interested delegates, who have showed up with purpose and made the Reside Summit a true platform for progress,” says Debbie Tagg, Chairperson of the Reside Summit.

Under the theme “Transforming Spaces, Enriching Lives,” the first day of the Reside Summit concluded with broad agreement that addressing South Africa’s housing crisis requires a unified approach that leverages the strengths of both public and private sectors. Participants committed to ongoing dialogue, joint initiatives, and policy reforms aimed at fast-tracking housing delivery.