A comparative analysis of the cost of alternative approaches to addressing housing need in Namibia

Despite considerable housing deficits, particularly in Africa, and the prioritization of housing agendas by many governments, there is relatively little research on the most cost-effective approaches to use. This paper provides a comparative analysis of four programmes addressing the housing needs of the residents of one Namibian town. The analysis informs our understanding of the most cost-effective and affordable ways to reach the town’s low-income residents. The research developed a financial framework to estimate both direct and indirect costs. We show that the lowest-cost approach is in situ upgrading; that higher-cost solutions, only affordable to higher-income groups, have higher unit subsidies; and that many subsidies are not explicit but reflect financial contributions that are not tracked. This analysis addresses a gap in the housing literature; despite widely recognized policy and programming challenges, there is little that addresses the need of policymakers for evidence about what works.