SUPPORT PROGRAMME FOR PUBLIC HOUSING PRACTITIONERS 1 Building Houses through Building People
Agenda: 20 May 2010 2 10h00 10h30 10h40 10h40 11h15 Arrival and tea Welcome (Andre Kruger, ABSA) Introduction and overview of the rental sector in (Matthew Nell, Shisaka) 11h15-12h15 Backyard rental (Adrian De Lollo) 12h15 13h15 13h14 14h15 14h15 15h15 15h15 15h45 15h45 16h45 16h45-17h15 19h00 21h00 Community Residential Unit programme (Jacus Pienaar) Lunch Social Housing Regulatory Authority (Graeme Reid and Andreas Bertoldi) Tea Inner city rental (Paul Jackson, TUHF) Summation of the day and closure Dinner
Agenda : 21 May 2010 3 07h30 08h30 Breakfast 08h30 10h00 Rental sector its role in Metropolitan Municipality s Housing Strategies 10h00 10h30 Tea 10h30 11h30 Rental sector its role in Metropolitan Municipality s Housing Strategies cont. 11h30 12h00 Summation and closure (Matthew Nell ) 12h00 12h30 14h00 Lunch 13h30 Maropeng visit Airport shuttle leaves from Hotel
Introduction cont. 4 The low to middle income rental housing sector comprises four key components: Backyard rental serves the poorest households (R0-R1,500 income a month) generally in informal and formal units within existing townships provided by home owners and small scale landlords. The new Community Residential Unit programme targets households with a monthly income of below R3,500 per month with a focus on stock owned by government (including hostels). Inner city rental is provided by both social housing institutions, as well as for profit private sector entities providing rental stock for lower through to upper income earners (R0-R3,500+). Social housing is provided by social housing institutions and serves middle income earners (R3,500 R7,500) generally in medium and high rise flats in inner cities and to a lesser extent new and existing townships. Each one of these are covered in workshop
5 Overview of the rental sector in Number of renter households Size 355981 201694 220939 196813 153584 21 22 43704 24755 23725 35682 Renting households as a % of total households 31 26 22 24 18 12 13 Source: Community Survey 2007 Source: Community Survey 2007 City of Joburg has the highest percentage of renting households. This is significantly higher than the national average (19% as per the Community Survey 2007) Ekurhuleni and City of Cape Town have second highest percentage of renting households also above the national average All cities above the national average with exception of Mangaung, Msunduzi and Nelson Mandela
Overview of the rental sector in 6 Dwelling quality Renter households by dwelling quality Formal Informal 19% 21% 30% 21% 21% 41% 47% 42% 81% 78% 79% 70% 79% 59% 53% 58% 13% 87% In general most dwellings are formal City of Joburg, Ekurhuleni and ethekwini have the highest percentages of informal dwellings Source: Community Survey 2007
7 Overview of the rental sector in Dwelling type Renter households by dwelling type Dwelling on separate stand (F) Flat / room in house (F) Shack in backyard (I) Informal settlement (I) Workers hostel (F) 0% 4% 2% 2% 14% 16% 7% 6% 2% 3% 5% 5% 15% 2% 0% 8% 3% 19% 2% 3% 0% 9% 28% 36% 28% 23% 39% 12% 13% 29% 36% 35% 34% 38% 21% 30% 53% 43% 25% 32% 32% 28% 50% 42% 52% Buffalo City City of Cape Town City of Johannesburg City of Tshwane Most dwellings include those on a separate stand, flat, room in house City of Joburg, Ekurhuleni and City of Tshwane have the highest percentages of shacks in a backyard ethekwini has highest percentage of shacks in an informal settlement City of Joburg, ethekwini and Msunduzi have highest percentage of hostels Ekurhuleni ethekwini Mangaung Msunduzi Nelson Mandela Bay Source: Community Survey 2007
8 Overview of the rental sector in Household size Renter households by household size 1 2-4 5-7 8+ 4% 6% 15% 20% 2% 2% 2% 2% 0% 6% 2% 2% 13% 14% 11% 13% 14% 14% 57% 57% 57% 57% 61% 53% 67% 48% 66% 24% 16% 28% 27% 26% 32% 27% 36% 18% Buffalo City City of Cape Town City of Johannesburg City of Tshwane Ekurhuleni ethekwini Mangaung Msunduzi Nelson Mandela Bay Source: Community Survey 2007 Generally one fifth to one quarter single person households The majority of households between 2 and 4
9 Rentals Overview of the rental sector in Average rentals by province by quality of structure Formal structure Informal structure Urban Rural Urban Rural Eastern Cape R837 R114 R162 R75 Free State R614 R595 R224 R62 Gauteng R1,227 R965 R237 R187 KwaZulu-Natal R778 R155 R160 R111 Limpopo R747 R440 R239 R215 Mpumalanga R820 R186 R163 R181 North West R1,756 R356 R211 R124 Northern Cape R486 R239 R297 R102 Western Cape R1,593 R784 R298 Highest rentals found in Gauteng and the Western Cape Rentals of informal structures significantly lower than formal structures Source : Income and Expenditure Survey 2005/6 surveys
10 Affordability Overview of the rental sector in Renter households by monthly household income 39% 75% 23% 17% 10% 5% Formal structure Informal structure 15% 6% 7% 1% 1% 1% Lowest income households in informal structures This shifts as incomes increase < R3,500 R3,500 - R7,000 R7,001 - R10,000 R10,001 - R12,000 R12,001 - R15,141 R15,142 + Source : Income and Expenditure Survey 2005/6 surveys
Conclusion 11 The rental sector is a critical component of the housing market. Approximately one fifth (19%) of all South African households rent their primary dwelling. While housing policy has in the past tended to favour ownership, increasingly the importance of the rental sector is being acknowledged. Rental housing: Provides access to affordable, well-located accommodation. Allows greater flexibility and mobility. Can be more affordable than ownership. Can play a role in the economic, social and spatial restructuring of South Africa s cities.