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MUNICIPAL ANALYSIS AIRPORT RESEARCH REGIONAL ANALYSIS HOUSING DELIVERY PERSPECTIVE Of SA

 

Inside South Africa - Housing Delivery

Since 1994, the democratic Government has delivered 3,7-million subsidised housing opportunities and services sites for the very poor, giving houses to approximately 12,5-million people (close to a quarter of the population). The following excerpts are taken from reports published by the Department of Human Settlements.

Fifty-six percent of all subsidies allocated have been to women-headed households, engendering housing in South Africa like in no other country.  A home is an asset that offers an entry point to social, commercial and work Opportunities, thus offering a sense of being a full citizen. South Africa has now reached a point where, for the first time, blacks outnumber whites for home purchases in suburban areas.
This is an indication of progress in terms of the racial integration of our cities and towns, as well as in terms of the growth of the black middle class. Together, Government and the private sector have delivered 5 677 614 formal houses, increasing the number of people living in formal housing from 64% in 1996 to 77,7% in 2011. This represents a growth of 50% for the period.  The formal housing market has increased 13-fold from R321-billion in 1994, reaching a collective value of about R4,036-trillion by 2014.

According to past Human Settlements minister, Mr Tokyo Sexwale: ‘These human settlements must be places where people can play, stay and pray. They should be green, landscaped communities, pleasant places where people live, learn and spend leisure time.’

Gauteng Department of Human Settlements state that “Despite Government efforts to provide housing for all, informal settlements in the country increased from 800 during Sexwale’s time as Gauteng premier to 2 500 in 2011. Moreover, the housing backlog had grown from 2,1-million to 2,3-million houses since he became Minister of Human Settlements due to a decrease in household size and an increase in household numbers. Mr Sexwale was very concerned about the situation after the global economic recession, saying that the ‘protests of our people are beginning to get more violent every day. It’s worrying. The police are shooting every day. Let’s work together and stem the tide.’ Despite these challenges, it was during Sexwale’s time that the number of housing units for the low income bracket first reached 3-million in 2013. By 2014, the number was 3,7-million houses and serviced sites.

By 2009, the Department of Housing had delivered 2,8-million houses since 1994, meaning that a quarter of South Africa’s population had benefi tted from government’s housing subsidy programme. ‘We have been able to build homes for more than 13-million people so far,’ Kotsoane said at the time. ‘The number of people who have benefitted is equivalent to the populations of Botswana, Lesotho, Namibia and Swaziland combined.’ 

Population growth and urbanisation continued to put pressure on government to provide houses. It forced government to put together various measures to solve the problem. One of them was ensuring that national, provincial and municipal levers of government worked together and that they collaborated with sister Departments so that amenities such as schools and clinics could be provided in a co-ordinated manner, with housing being the conduit. This was the heart of BNG and still is the preferred method of providing human settlements. Kotsoane, known for his hands-on approach, threw himself admirably to the task.
Relationships with the private sector and civil sector were strengthened. He enjoyed a good working relationship with Minister Sisulu. He left behind a solid legacy of a hands-on management and commitment to delivery.

But Adler is optimistic. He sees three key areas as the future focus of the HDA: ‘Land assembly, bulk infrastructure division and planning. If we get those right, I think that we will justify the promise that the first five years have shown.’

One of the lasting legacies of South Africa’s past is people, who earn very little, living far away from the towns and cities where they work.  As a result, they have to spend most of their meagre earnings on transport, and never get a chance to sample amenities in their urban space. This greatly affects the quality of life of these people and their families, as most of the time has to be spent commuting to and from home. If they insist on being closer to work, they almost inevitably find themselves dwelling in informal settlements on the outskirts of the city, on the margins of socio-economic life. To help reduce the spread of informal settlements.

To obtain RDP housing is not simple. To get an RDP housing application approved, the applicant may not earn more than a certain amount (R3000 per month) which means that people who earn more than the maximum to qualify for an RDP house but less than the required amount to qualify for a home loan, will have a difficult time in getting financing to buy any sort of house.

An audit of the RDP housing situation in Gauteng has revealed mass irregularities, costing the province billions of Rand. From errant suppliers to evidence of collusion with officials, the housing MEC has vowed to root out the rot. One of the solutions is to rework the housing model that will include mixed developments.  Sisulu said the municipality and provincial Human Settlements Department had rectified 28,261 houses between 2011 and 2014.

It was a housing backlog that prompted the Gauteng Department of Human Settlements to create a mega housing development, one that caters not only for low-income earners.

In light of this we at market Decisions, looked at the three Census Periods from 1996 to 2011, in terms of Population and Housing to examine the relationship between the formal housing and informal housing and determine if there is growth or decline in housing development.  

Province

1996_Pop

2001_Pop

2011_Pop

1996_Dwellings

2001_Dwellings

2011_Dwellings

Eastern Cape

6,271,373

6,436,619

6,562,054

1,362,724

1,535,292

1,687,385

Free State

2,624,302

2,706,673

2,745,591

641,179

757,875

823,316

Gauteng

7,297,083

8,837,013

12,272,263

2,047,475

2,836,584

3,909,022

KwaZulu-Natal

8,353,054

9,425,824

10,267,300

1,712,035

2,201,275

2,539,429

Limpopo

4,899,323

5,273,489

5,404,868

1,000,473

1,250,289

1,418,102

Mpumalanga

2,786,116

3,122,892

4,039,939

617,555

783,307

1,075,488

North West

3,341,371

3,669,407

3,509,953

736,050

978,756

1,062,015

Northern Cape

829,161

822,730

1,145,861

198,618

220,364

301,405

Western Cape

3,838,154

4,524,119

5,822,734

1,021,143

1,210,456

1,634,000

Totals

40,239,937

44,818,766

51,770,563

9,337,252

11,774,198

  14,450,162


The next step is to look at the type of dwelling units:
 The first is brick dwellings, on a separate stand, which could be regarded as a “formal structure”

Brick Dwellings

1996

2001

2011

Eastern Cape

496,156

624,218

880,683

Free State

337,445

438,094

618,304

Gauteng

1,004,824

1,424,660

2,307,843

KwaZulu-Natal

602,646

915,303

1,518,700

Limpopo

559,083

818,040

1,221,028

Mpumalanga

345,885

473,573

847,708

North West

443,481

621,323

738,782

Northern Cape

132,466

158,606

229,818

Western Cape

555,929

763,749

1,021,163

Total

4,477,915

6,237,566

9,384,029

The next is townhouses/clusters, also recognised as formal structures:

Townhouse/Cluster

1996

2001

2011

Eastern Cape

80,791

90,077

94,947

Free State

29,085

23,050

27,928

Gauteng

279,049

312,747

503,335

KwaZulu-Natal

234,841

265,419

213,252

Limpopo

16,737

16,181

17,708

Mpumalanga

22,111

19,824

27,091

North West

20,374

16,290

28,074

Northern Cape

14,435

7,173

8,090

Western Cape

219,354

156,260

159,400

Totals

  916,777

  907,021

1,079,825

The final formal structures refer to traditional structures, which could be formal, or even semi formal:

Traditional Dwelling

1996

2001

2011

Eastern Cape

552,830

576,535

476,285

Free State

64,738

52,710

19,543

Gauteng

15,245

34,445

13,723

KwaZulu-Natal

538,329

580,953

483,296

Limpopo

315,440

232,471

63,974

Mpumalanga

109,264

94,858

48,286

North West

51,368

49,405

17,531

Northern Cape

7,743

7,119

9,505

Western Cape

9,329

25,655

7,775

Total

1,664,286

1,654,151

1,139,918

 

Room shared property

1996

2001

2011

Eastern Cape

19,157

23,081

35,694

Free State

9,401

23,941

7,558

Gauteng

38,953

184,884

90,815

KwaZulu-Natal

35,321

114,103

39,194

Limpopo

12,844

70,314

17,669

Mpumalanga

11,706

49,821

12,252

North West

11,345

48,901

13,483

Northern Cape

3,629

13,113

6,666

Western Cape

22,771

35,613

109,213

Total

165,127

563,771

332,544

Now comes the interesting analysis:  Informal Shacks in the backyard and the settlements themselves. If the figure in backyard shacks is increasing, it could be that the overcrowding of the past led to an explosion of new households, or more likely, the foreign inflow who are contributing to the household through rentals.  Informal settlements have also sprouted despite the delivery of three million houses and one million serviced sites.

Informal Shacks in BY

1996

2001

2011

Eastern Cape

31,918

30,995

34,408

Free State

50,931

44,075

48,633

Gauteng

154,003

185,533

305,683

KwaZulu-Natal

44,811

48,557

62,658

Limpopo

15,833

21,092

32,278

Mpumalanga

24,711

24,459

38,274

North West

45,414

51,880

76,182

Northern Cape

5,294

5,357

9,558

Western Cape

33,437

46,754

105,282

Total

406,352

458,702

712,956



Informal_Settlement

1996

2001

2011

Eastern Cape

115,423

135,222

95,983

Free State

112,701

147,054

80,355

Gauteng

315,502

448,107

434,075

KwaZulu-Natal

141,582

176,995

148,889

Limpopo

32,440

56,765

41,434

Mpumalanga

69,971

92,804

78,532

North West

114,688

155,501

148,794

Northern Cape

22,487

20,426

30,047

Western Cape

130,906

142,662

191,668

Total

1,055,700

1,375,536

 1,249,777

If it is assumed that on average South Africa has a household size of a figure as low as 3.9, then it follows that the country will require about 14,000 to 15,000 houses, if every household lives in a formal structure.  In reality, there will be people who rent rather than own.  Over the past few years, an additional 500,000 houses were provided, so this means that about 2 million houses would be the true shortfall figure for assisted housing.


Number of Low Cost Housing delivered per annum:


YEAR

# of Houses Built

Serviced Site

Total Opportunities

1994/95

60,820

 

60,820

1995/96

74,409

 

74,409

1996/97

129,193

 

129,193

1997/98

209,000

 

209,000

1998/99

235,635

12,756

248,391

1999/2000

161,572

 

161,572

2000/01

170,932

19,711

190,643

2001/02

143,281

 

143,281

2002/03

131,784

82,286

214,070

2003/04

150,773

42,842

193,615

2004/05

148,253

87,284

235,537

2005/06

134,023

109,666

243,689

2006/07

153,374

117,845

271,219

2007/08

146,465

82,298

228,763

2008/09

160,403

68,469

228,872

2009/10

161,854

64,362

226,216

2010/11

121,879

63,546

185,425

2011/12

120,610

58,587

179,197

2012/13

115,079

45,698

160,777

2013/14

105,936

48,193

154,129

2014/15

94,566

49,345

143,911

2015/2016

99,534

52411

151,945

 

3,029,375

1,005,299

4,034,674

To summarise on housing delivery, the following are key issues, which to be fair, the Human Settlements are well aware of, and are delivering on their mandate:

  • The most important issues remain the Housing Registry Database.  There are people who have been on the waiting list for twenty years, but somehow always miss the opportunity to own a house.
  • There is no communication between Government, NGO’s and the Community. This has to change.
  • Many people living in low income housing have access to employment. Some even rent rooms within the house, thus earning an income. No one has monitored this.
  • There are households who live/have access to more than one house, albeit in separate extensions.
  • There is an urgent need to educate recipients of the free units.  They will have to contribute a small fee for maintenance and would need to pay for the services received. After all, many pay for Satellite TV.
  • The Ministry should geographically code each unit and allocate it to an owner, who can then have the option to purchase it and use it as a collateral for future loans.
  • The areas which have low income housing falls short on community or recreational facilities, including education. This has led to a growth in drug use amongst the poorest of the poor.
  • A huge opportunity has been lost in the training of residents in the housing developments to develop adequate skills in trade. These could have been two years of technical training and two years of apprenticeship. Many have six months training and this is evident in the inferior workmanship.
  • There are dual income households who wish to own a second home in the urban areas where affordability is a factor, but there is money for rental housing below R3,500.00 per month.