Rethinking the Role of Housing in Township Economic Development

Abstract

Housing demand is increasing due to global population growth. Beyond providing shelter, housing construction and renovation are integral to economic development by stimulating demand for construction materials, generating employment, contributing to investment prospects and housing finance. Grounded on a case study of Bochabela Township under Mangaung Metropolitan Municipality, this paper stimulates a deeper understanding of housing's role in promoting economic activities within South African townships to mitigate poverty. Primary data was gathered through a survey of 314 households, key informant interviews with seven municipal officials and housing practitioners, plus community leaders. The study makes a case for attempting a more collaborative approach towards township housing revitalisation and economic development. Based on findings, it argues that there has been a poor connection between housing development and economic growth in the past, leading to unsustainable livelihoods for township residents. Due to its prime location and affordable (yet substandard) housing, Bochabela, is attractive to migrants and locals seeking to be closer to opportunities and amenities. The study suggests that it would be beneficial for residents to pursue strategies that promote economically linked adequate housing, especially since many already use their houses for income generation.