The housing problem in South Africa: Legitimate squatting is the only financial viable option. This article shows that housing for blacks in South Africa is a serious problem. This is done by accentuating certain staUsUcal facts and trends with regard to population, population growth, income and income growth. In order to meet the need for housing in South Africa under the current economic situation one must allow blacks to squat where basic facilities are at their disposal. It is shown that other alternative solutions to the housing problem, such as a social acceptable interest rate, will only benefit those blacks who can solve their own housing needs in a luxurious way.