South Africa’s higher education system is facing a serious challenge. There is not enough affordable and safe student accommodation, leaving many students between three unfavourable possibilities: 1) homelessness, 2) settling for substandard housing and/or 3) travelling long distances and incurring high costs as a result. This situation affects their ability to concentrate on studies and ultimately hinders their academic success.

Research has shown that demand for student housing far exceeds available supply. A report compiled by the International Finance Corporation says that hundreds of thousands of students struggle every year to secure a decent place to live. When students do not have dignified accommodation, they are forced into costly commutes or into renting off-campus properties that may compromise their safety and well-being. The result is added financial stress and distractions from academic responsibilities.

A further complication is the funding crisis that now threatens the smooth operation of student residences. A recent article in Daily Maverick reports that the National Student Financial Aid Scheme (NSFAS) currently owes student accommodation providers R44-million in overdue rental fees. With these delayed payments, providers are left uncertain about their rental income. This uncertainty could result in them denying students access to their accommodation or raise rent prices further, putting severe strain on students, especially those from low-income backgrounds.

The NSFAS payment delays are not just an administrative problem. They have a direct impact on the lives of students who depend on timely support to secure a safe living space. As it stands, many providers rely on NSFAS funds to cover operational costs and to maintain standards in their properties. Without prompt payment, these providers will struggle to keep up with necessary repairs and improvements, resulting in poorer living conditions for students. It is clear that resolving this funding issue is essential to ensuring that student accommodation remains both accessible and safe.

Another pressing concern comes from record demand for university places, as reported by Anathi Madubela on Money Web. More than 100,000 recent matriculants are left without placement in public universities because the number of bachelor passes now exceeds available spaces. For instance, leading institutions such as the University of the Witwatersrand and the University of Cape Town can only accommodate a fraction of those who qualify. At the University of Johannesburg, for example, nearly 359,000 applications are competing for just over 10,500 undergraduate spaces.

Madubela goes on to report that this demand-supply mismatch means that many qualified students are forced to look at alternatives, such as private institutions. South Africa has 131 registered private higher education institutions, however the fees at these institutions are prohibitive. For many, the only viable option may be Technical Vocational Education and Training (TVET) colleges. However, these institutions often cannot absorb the excess demand or provide the same level of career opportunities as a university degree. This has far-reaching implications for social mobility and the broader South African economy.

The combined effect of housing shortages and placement constraints is a double burden on students. Not only are those who manage to secure a place in a public university confronted with inadequate accommodation, but many also struggle to even gain admission. This situation underlines a systemic failure that extends from the entry point into higher education through to the day-to-day living conditions of students.

Universities are now locked between their responsibility to widen access and the realities of limited physical resources. Many institutions have increased their intake without ensuring that their infrastructure, including student housing, can support the new numbers. While some have turned to public-private partnerships (P3) to build new residences, these arrangements may introduce new challenges. There is a risk that investor priorities might focus on short-term returns rather than on creating affordable and sustainable housing solutions for students. However, the responsibility to provide higher education as well as affordable housing is too broad and complex for our government to adequately meet. P3s prove to be one of the more plausible resolutions to this complex problem.

A co-ordinated approach is needed from all relevant stakeholders. Universities must adjust their admissions policies to reflect realistic housing capacities. The government should urgently address the NSFAS funding delays and re-assess the current subsidy model to ensure it meets actual rental costs. Importantly, private investors should be encouraged to support projects that prioritise affordability and quality over profit margins.

Tackling the student accommodation crisis requires a pragmatic and united effort. It is not enough to simply build more beds if the funds to maintain them are not in place. We must fix the funding mechanism so that providers are paid on time and at rates that reflect market realities. At the same time, universities need to manage enrolment numbers with a clear eye on their infrastructure limits, and the government must ensure that any private sector involvement is strictly regulated to protect the interests of students, especially those coming from poor and working-class households.

Addressing these issues is not just a matter of improving living conditions; it is about giving every student a fair chance to succeed. When students have access to stable, safe, and affordable housing, they can focus on their studies and contribute to a more dignified and cohesive society.
By Danielle Hoffmeester