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In the global South, policies providing property titles to low-income households are increasingly implemented as a solution to poverty. Integrating poor households into the capitalist economy using state-subsidized homeownership is intended to provide poor people with an asset that can be used in a productive manner. In this article the South African ‘housing subsidy system’ is assessed using quantitative and qualitative data from in-depth research in a state-subsidized housing settlement in the city of Cape Town. The findings show that while state-subsidized property ownership provides long-term shelter and tenure security to low-income households, houses have mixed value as a financial asset. Although state-subsidized houses in South Africa are a financially tradable asset, transaction values are too low for low-income vendors to reach the next rung on the housing ladder, the township market. Furthermore, low-income homeowners are reticent to use their (typically primary) asset as collateral security for credit, and thus property ownership is not providing the financial returns that titling theories assume.
