Cape Town aims to alleviate its affordable housing shortage by boosting construction and releasing municipal land. While acknowledging the impact of Airbnb on rental prices, the city focuses on increasing supply rather than regulating platforms like Airbnb.
Cape Town is taking steps to address its housing affordability crisis by increasing the supply of dwellings in the city. This initiative comes amidst criticism directed at Airbnb , a short-term rental platform, for contributing to the problem. Mayor Geordin Hill-Lewis believes that regulating the supply side of the housing market is more effective than controlling demand.
While acknowledging that the influx of digital nomads, who often utilize Airbnb, has driven up long-term rental prices, particularly in the central business district (CBD) and surrounding areas, Hill-Lewis points to lengthy construction approval processes as the root cause of the inconsistent supply of affordable housing. The City of Cape Town (CoCT) has outlined several plans to increase affordable housing stock. These include releasing well-located municipal land for development, incentivizing small-scale developers with discounted development charges in high-demand areas, and making land available for over 12,000 new units across the metro. The CoCT has also committed to investing R444 million in congestion relief projects over the next three years, aiming to address the city's traffic woes, which were ranked as the fifth most congested in the world according to the 2024 INRIX Global Traffic Scorecard. The CoCT is also investing in expanding the MyCiti bus service, which currently operates over 40 routes, and plans to make rail the backbone of its public transport network. Airbnb, which has faced criticism for contributing to the housing affordability crisis, has been engaged in discussions with the government regarding potential regulations. Proposed measures include limiting the number of nights property owners can rent out their homes on short-term rental platforms and establishing a national registry of all short-term rentals. The CoCT's focus on increasing the supply of affordable housing suggests that short-term rental platforms may not face stringent government regulation
Travel & Tourism Cape Town Housing Crisis Affordable Housing Airbnb Short-Term Rentals City Development Transport Infrastructure
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