The government just dumped the millions of South Africans waiting for RDP homes

According to National Treasury, the government will be diverting money away from the Department of Human Settlements (DHS).

The decision means millions of South Africans still on the national housing waiting list won’t be getting homes any time soon.

There are no plans to help millions with affordable housing

South Africans who have been waiting decades for an RDP home or other government-assisted accommodation will have to wait longer.

Why?

National Treasury is budgeting less for DHS, the department responsible for building these homes.

According to the Adjusted Estimates of National Expenditure (AENE), Treasury has decreased the department’s budget by 24% in one year.

In 2025-2026, the mid-year revision saw the department getting R34.9 billion.

However, this year’s mid-year revision shows the department is only getting R26.4 billion.

National Treasury admits in the Medium Term Budget Policy Statement (MTBPS) that it’s redirecting R7.8 billion away from the grant until a “more responsive model is designed.”

A breakdown of the allocation shows it’s reducing the budget of 3 programmes within the department, including:

• Administration (-R46.2 million)
• Integrated Human Settlements (-R7.2 billion)
• Informal Settlements (-R1.4 billion)

But the budget for employee compensation will increase by 4.6%.

DHS not meeting its targets

The decision to abandon millions of South Africans in the affordable housing queue comes as the Department of Human Settlements can’t meet its targets.

For example, DHS planned to build 150 homes for South Africa’s military veterans.

It only built 38.

The national department blamed provincial departments for the delay.

Then it came up with a plan to fix it by expediting “the

implementation of service-level agreements.”

Yet, at every level, the department has an even worse track record.

So far this year, of a goal to deliver 17 027 title deeds, the department has delivered 2 506.

For its goal of upgrading 965 informal settlements, it has completed only 95.

Of its plan to subsidise 30 777 affordable home applications, it has achieved 1 455.

The department has accomplished 47% of what it should have by this point in the year.

Indicator	2026/2027 Goal	Half-Year Performance
Fully subsidised homes	62 215	13 246
Title deeds registered for new developments	17 027	2 506
Informal settlements upgraded to phase 3	965	95
Delivery of serviced sites	83 021	19 761
Delivery of affordable rental units	2 200	5 109
Finance-linked individual subsidies	30 777	1 455

Homeownership is out of the question

Those hoping to get a deed to their home aren’t being prioritised.

Instead, the data suggests the department is prioritising rental units over homeownership.

The only target the department has surpassed is the number of affordable rental units it has delivered.

The goal is to deliver 2 200 rental units per year.

By September 2026, the department had already doubled its goal, delivering 5 109 units.

When can those on the waitlist expect a home?

National Treasury has revealed the department will be starting from scratch.

It admits the current delivery model is inefficient.

So, it will rely on the White Paper for Human Settlements instead.

The White Paper, it suggests, “offers an opportunity to reset housing delivery.”