The new project in the heart of Stellenbosch is an attempt to rewrite the narrative on affordable housing-and potentially offer a replicable model for other communities across South Africa.
The Cloetesville Affordable Housing Initiative, spearheaded by MDW Cape Town Inc. in partnership with the Stellenbosch Municipality, is said not to merely be a housing project but a comprehensive homeownership support system that addresses the “GAP market” or the “missing middle”- the millions of South Africans who earn too much to qualify for free government housing, but too little to access bank-financed home loans.
“The affordability gap is real,” said Meyer de Waal of MDW Inc., who is also a Cape Town-based conveyancing attorney, the architect of several groundbreaking housing support platforms, and a housing reform advocate.
“People are often excluded from homeownership not because they’re reckless with money, but because the system is not designed to support them where they are. We want to change that,” De Waal said.
South Africa has more than 2.3 million people who remain on the Government’s official housing waiting list.
The firm, which provides unique, innovative and specialised property service said SA’s housing challenges are rooted in decades of inequality and exacerbated by modern-day economic constraints.
It said with rising living costs, stagnant wages, persistent unemployment, and unscrupulous unsecured credit providers taking advantage of vulnerable financial situations, many working-class families find themselves trapped in debt, resulting in rental cycles they cannot escape, and unable to secure homeownership or build wealth through property.
It noted that it is where initiatives like the Cloetesville project step in.
They said what makes the initiative different is its integrated, people-first approach. At its core, the initiative is described as a homeownership readiness programme.
Helen Rourke, programme director of the Development Action Group (DAG) said, “Stellenbosch is one of the most unequal municipalities in the Western Cape Town with an oversupply of luxury high-end real estate and an undersupply of entry-level affordable housing.”
Rourke said it also has a very high percentage of rental households due to the student market.
“Against this stark backdrop of inequality, Stellenbosch municipal officials have been leading in the province, along with partners, on how to address the issue of affordable housing.”
“This partnership with the community of Cloetsville and MDW Inc. bodes well for addressing the growing demand in the affordable housing segment of the market,” she said.
The non-profit organisation that works to create equal, inclusive, and sustainable neighbourhoods and cities through development processes added that if this programme can be linked to emergent opportunities being created through the Municipalities Inclusionary Zoning programme, the country could potentially see not only the increased supply, but also well located affordable housing closer to economic opportunities and not located on the urban periphery.
Through a combination of in-person consultations, community help desks, and online webinars, residents receive practical support that includes: income and affordability evaluations; debt rehabilitation and credit score improvement plans; and pre-qualification tools for home loans.
More importantly, those who qualify for the First Home Finance subsidy (formerly FLISP) can receive support from the MDW Inc. team to secure government assistance in reducing the purchase price of their first home, or expand their home buying purchasing power.
Participants also gain access to MDW Inc.’s broader suite of homeownership tools developed over the past decade including Rent2Buy, My Bond Fitness and First Home Finance.
“We’re walking with people step by step by demystifying finance, removing shame around debt, and helping them see that owning a home is possible,” said De Waal.
“The tools are out there. Our job is to help people access them.”
Online webinars and information sessions at community venues like Eike Hall and the Cloetesville Banquet Hall have seen growing attendance since the project launched at the end of 2024.
De Waal explained: “Residents are eager to learn how to break free from generational rental dependency, and the feedback we’ve received suggests that the demand for this kind of structured support is immense.”
With the project’s data-driven and community-led model gaining momentum, MDW Inc. hopes to replicate the framework for other municipalities grappling with housing backlogs and affordability challenges.
The data gathered through the Cloetesville initiative is being collated and submitted to the Stellenbosch Municipality for further analysis.
This information will enable the municipality to design a local housing strategy and housing typology that directly reflects the affordability levels and needs of the community.
The Cloetesville pilot is part of a broader track record as MDW Inc. has supported similar initiatives in Darling, Mossel Bay, Bredasdorp, Plettenberg Bay, Hout Bay, Riversdal and Giyani, applying its homeownership readiness model to diverse contexts across SA.
While the initiative is focused on an underserved, lower-income demographic, De Waal pointed out that their services benefit a much broader market.
Middle-income professionals, freelancers, and even dual-income households often face challenges qualifying for home loans, managing deposits, or navigating the subsidy landscape.
He said that they have helped nurses, teachers, police officers – people who work hard every day, pay their rent, but can’t seem to break into the property market.
“This is about reshaping the entire homeownership journey for anyone who needs help to get there.”
As SA urbanises rapidly, with over 70% of the population projected to live in cities by 2030, the strain on housing stock, infrastructure, and affordability is mounting.
Traditional models of housing delivery are no longer adequate.
What the initiative is said to shows a scalable, holistic alternative: one that prioritises financial education, affordability assessments, and government subsidy access as core pillars of urban housing development.
De Waal said projects like the initiative offer some hope, not only because they address the affordability issue, but because they empower citizens with agency.
“Homeownership isn’t just about property. It’s about dignity. And it’s about finally opening the door to the kind of stability every South African deserves.”
Independent Media Property
