Stellenbosch is a region renowned for its sprawling wine farms, luxury housing estates, vibrant food scene and art galleries. It is also one of the most unequal areas in the country, as indicated by its high Gini coefficient.

However, a new zoning policy introduced by the municipality is looking to change this. The policy requires that private developers building 20 or more residential units in the towns of Stellenbosch, Franschhoek and Klapmuts need to include 20% “inclusionary housing”, affordable homes for the less affluent.
The Stellenbosch municipality is only the second in the country to introduce this policy after Joburg.
Since its introduction in 2023, about 900 new housing units have been approved. These must benefit employed households with stable incomes and do not include students. Preference is for Stellenbosch residents, key workers, vulnerable groups, first-time homeowners and female-headed households. Such households need to have a monthly income between R3,500 and R27,200 for unit prices between R300,000 and R1.2m. These are for rent or ownership and need to remain affordable for at least 30 years.
The effects of apartheid spatial planning are real for the town’s mayor, Jeremy Fasser. He grew up in Cloetesville, one of the poorest areas in Stellenbosch and one designated in the Group Areas Act.
“It took a lot of time to understand what we wanted to achieve as a municipality. It was also about coming up with innovative ways of closing the gap. If you look at the housing market in Stellenbosch, you will be lucky if you get a property for under R3m,” Fasser tells the FM.
A recent Western Cape government housing study backs this up. It says access to formal housing is difficult, particularly for lower-income households.

Fasser says the municipality spoke to developers and others involved in drafting the policy. “We were on a path of co-operation with the developers to say, how can we create opportunities for middle-class people to own a property in Stellenbosch. It took a lot of negotiations, but we learnt from it step by step.”
The municipality says the 2019 development framework was about achieving “a balanced housing supply across income groups” so that it was not a shock to the system when the policy eventually came into effect in June 2023.
As a teenager, Fasser recalls putting up a backyard domestic structure in his mother’s house. He grew up in a small government-subsidised home and was eventually able to buy his own house, but is aware many people do not have the same opportunities.
Fasser says housing is top of the agenda in planning meetings across Stellenbosch. “It needs to be addressed. If we are going to be dependent on national and provincial funding only, we are never going to close the gap.
“You have to understand what’s happening on the ground level. Engage with your civil society forums, understand where they are coming from and then take them on the journey. That for me, is the powerful thing that we could establish in Stellenbosch. We are constructively examining how we can address their challenges,” says Fasser.
He says Stellenbosch is a town in demand, so when it comes to development there must be a balance. “If you don’t have the infrastructure, you can’t have developments. Our core mandate is to have the infrastructure that creates development opportunities.”
Fasser attended a meeting earlier this month with those involved to discuss the potential impact of the policy. Stellenbosch municipal manager Geraldine Mettler acknowledges that there was some pushback by developers during the engagement period. Officials emphasised that the policy was not going to replace others, such as the government-subsidised social housing programme, but would work alongside those.
Spatial imbalances continue to define South Africa's urban landscape, especially in Stellenbosch
— Geraldine Mettler
Mettler says spatial imbalances continue to define South Africa's urban landscape, especially in Stellenbosch. She says the municipality wanted to see a more equal and inclusive town. “There were concerns, particularly from developers, about profit and feasibility. Trust me, they will come with figures. We engaged, we negotiated and, above all, we stood firm for our principles, supported by research,” she says.
She says though zoning is not a silver bullet when integrated into broader planning goals, such as transport developments, densification and economic inclusion, “it becomes a powerful enabler”.
Helen Rourke of the Development Action Group says it is important for bold municipal leadership and political support in land policy. The group focuses on low-income and affordable housing, neighbourhood regeneration and inclusionary initiatives.
“We know that in South Africa we are sitting with some serious issues in terms of the racial and spatial divide, and people are living with this daily,” says Rourke. “It is not only resetting development in Stellenbosch, but it is also contributing to a national conversation.”






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