Evidence indicates that class-based segregation is replacing racial segregation in South Africa. However, it is also suggested that hypersegregation, being indirect racial and economic segregation of poor neighbourhoods due to selective outmigration is occurring. The study analyses whether hypersegregation and class-based segregation is occurring in the Cape Town municipal area, what causal factors could possibly contribute to these trends and the descriptive characteristics of these processes. The study employs descriptive statistics to determine whether changes in neighbourhood characteristics fit the characteristics of hypersegregation and class-based segregation theories and spatial analysis to determine whether poverty and wealth is clustering. The study also uses multivariate statistics to find significant correlations between observed poverty levels, segregation characteristics and possible causal factors. The findings indicate that differences in neighbourhood poverty levels is widening, and extreme poverty neighbourhoods and low poverty neighbourhoods are clustering spatially and polarising from each other. Descriptive statistics indicate that neighbourhood characteristics fit the descriptions of hypersegregation and class-based segregation and that neighbourhood changes can be linked to housing ecology and subcultural variables as possible causal factors. However, multivariate districts indicate that although there is a significant correlation with the economic characteristics of class-based segregation, there is no significant relationship between poverty levels and racial segregation. Hypersegregation and class-based segregation is economic in nature, not racial. Finally multivariate statistics also indicate the significance of housing ecology and subcultural variables as possible causal factors in class-based segregated neighbourhoods, whilst housing ecology factors alone is significantly correlated to hypersegregation.