Urban renewal and development is an important strategy in the South African government's plans to combat poverty and transform the country's economy. The aim of this study was to investigate the perceptions and attitudes of residents (the local commununity) towards a mixed-use development in Hout Bay, Cape Town. An exploratory factor analysis was used to reduce 13 usable variables to four factors, labelled as macro-, micro-, location specific- and infrastructure and superstructure factors. The findings based on the four factors suggest that significant differences exist in the perceptions of development between different socio-economic groups within the community. Regardless of the socio-economic background of residents, they agreed that development should blend in with existing architecture and the character of the area.