In response to a critical housing shortage in major metropolitan areas, a coalition of housing advocacy groups and academic institutions has launched the inaugural Township Rental Dialogue, framing the growing phenomenon of backyard rentals as a key part of the solution.
The initiative, convened by the Development Action Group (DAG), PlanAct, and the University of the Free State, aims to unlock the potential of small-scale residential property development to alleviate the significant housing backlogs plaguing cities.
Professor Ivan Turk highlighted a significant policy gap, noting that the “exponential growth” in backyard dwellings has been largely neglected by official housing policy. He argued that encouraging densification in existing neighbourhoods through backyard housing is a preferable alternative to the unchecked expansion of informal settlements.
“We see the growth of informal settlements which are very unsatisfactory in various ways, occupying land that is dangerous, that is hazardous, flood plains and so on,” said Professor Turk. “We need to encourage more densification of our existing neighborhoods and backyard housing is one way to do that.”
The scale of the challenge was underscored by the City of Johannesburg, which reported a backlog of approximately 190,000 households awaiting proper housing. A spokesperson for the city acknowledged that backyard rentals are one of many necessary housing solutions but stressed the urgent need for parallel infrastructure investment.
“If you are going to in a stand that was naturally designed to have one dwelling and you are now putting three dwellings on that stand, the demand for sewage, the demand for water, the demand for electricity will grow as such,” the spokesperson said. The city is now looking to use Urban Settlements Development Grant (USDG) funding to upgrade pipes, energy capacity, and roads in existing townships.
To bolster the supply of quality housing, the private sector and micro-developers are being encouraged to enter the built environment space. A representative from DAG explained their work in establishing a Contractor and Developer Academy to mentor emerging construction companies and micro-developers.
“We are capacitating the emerging construction companies but also are capacitating and mentoring the what we call micro developers,” the DAG spokesperson said, adding that this de-risking work is key to ensuring the construction of safe, sustainable units that also create employment.
Financing remains a hurdle, but a forum representative pointed to the growing middle class as a potential source of investment. “We are actually trying to tap into this middle class to actually bring them on board to actually want to be involved in building legacy for themselves,” the representative said.
The City of Cape Town was cited as a leading example for its proactive approach. The city has set up a local planning support office and, as of June, amended its municipal planning bylaw to allow homeowners in 194 areas to build up to eight backyard units without needing plan approval.
Beyond infrastructure, Professor Turk emphasized that municipalities must also invest in amenities like green spaces to improve the living environment in densifying townships. Participants at the dialogue concluded that the conversation must now evolve into a national one, with a firm focus on implementation to effectively tackle the housing crisis.