The overall effect is to lower the demand for goods and services in the economy, economic activity and inflation pressures. But while crucially important, the role of housing in the monetary transmission mechanism is well known and in the interest of brevity I will not focus on it here.
The speedy implementation of some of the key recommendations and proposals contained in the National Development Plan would be a good start. References Behar. A. 2008. “Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa.” Economic Research Southern Africa Working Paper No. 73. Bank for International Settlements, 2013. BIS Annual Report.