RESEARCH PROBLEM: While the intended goals of Mixed Income Housing (MIH) are unquestionable as a means of deconcentrating poverty, encourage social and racial integration there is still persistence of NIMBY-ism due to the purported house-price lowering effects. The problem is that the negative

perceptions that often lead to resistance of MIH are largely based on heuristic judgments, with no solid evidence of the purported negative impacts in the case of South Africa. Compared to the developed world, the nature of research in South Africa has largely been descriptive and desktop analysis hence guidelines on MIH is to the bare minimum.

METHODOLOGY: An explorative hedonic model was used to analyse the price elasticities associated with house price determinant variables of the Randburg area that received Cosmo City MIH.

FINDING: There is an overall negative impact on house prices across six out of seven suburbs close to Cosmo City. This confirms the hypothesis that a typical MIH in South Africa is not viewed favourably despite all its highlighted benefits for residential markets.

CONTRIBUTION: This study is part of a broader on going PhD research study at the University of the Witwatersrand in South Africa. It provides an empirical insight on how market perceived Inclusionary Housing (IHP) in a South African market. Upgrading infrastructure, amenities and security are some of the policy implications that could reverse the impact of such models in the future.