The aim of the study was to examine the physical condition of houses built under the ``Breaking New Ground`` scheme and the environment that surround the residential areas. The Breaking New Ground housing plan seeks to provide housing to low-income groups in South Africa. The housing structures were examined in accordance with the ``Breaking New Ground`` housing policy, the Constitution of South Africa and the Freedom Charter. The study was qualitative in nature and an observational method was used to collect data. The study examined the physical condition of 45 housing units and their surroundings. The observational examination indicated that most of the residential units had structural defects and the environment was not conducive to the promotion of health and wellbeing among housing beneficiaries and their families. The design and aesthetic appeal of the houses was distorted by poor workmanship as they presented with inherent flaws. It was observed that the location of some of the housing clusters was isolated and far from places of work and the transport network was not efficient. Recommendations include improved quality control, aesthetic appeal and durability of housing units constructed under the Breaking New Ground housing scheme in South Africa.
 Keywords: Low-cost housing; observation; breaking new ground; South Africa
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