This paper explores the 'spirit of the gift' as a framework for the analysis of the moral and political economy of public housing delivery in South Africa since democracy. The paper compares the gifts of Reconstruction and Development Programme (RDP) houses delivered by the state to 'beneficiaries', selected from long waiting lists in cities, towns and some rural places, with the homes built by families as gifts for their ancestors in their former homelands and rural areas. One of the central features of gifts, according to anthropologists, is that they are meant to be inalienable possessions, things that should not be sold or commodified. They are also assumed to carry a spirit, an aura or identity that binds them to the givers and communicates a relationship with those who receive the gifts. In post-colonial societies scholars tend to discuss the delivery of public goods and infrastructures within a framework of rights and entitlements. What they overlook is the extent to which public goods are also sometimes conceptualised and received as gifts that carry a sense of expectation, obligation, and the spirit of social exchange. The paper focuses on what happens when the 'spirit of the gift' of public housing is not honoured or reciprocated by beneficiaries as the gifts develop new social lives outside the parameters of those intended in the original policy. The ethnographic and historical evidence presented in the paper is drawn from numerous research projects undertaken by the author in Cape Town and the Eastern Cape.