5.2 Assessing Housing Affordability
5.2.3 Affordability and Housing Location Choice
133 The results in Table 5.10 also show that between 68 per cent and 71 per cent of heads of households in informal settlements on Lacey Road, Havelock Road and Sir Kumar Reddi Road were employed. The number of those who were unemployed included the high number of wives who were not economically active or actively seeking work on the job market. The results in this Table suggest that above 80 per cent of household members were economically active and employed in the formal sector. The results shown in the Table indicated that about 21 per cent of the households in all three settlements were engaged in informal business activities. The number of households engaged in business was low and there is a chance that a large number may have given negative responses on this issue to avoid disclosing the clandestine nature of their businesses.
It is important for this study to establish the extent to which residential location impacts on housing affordability. This is vital for this study to understand the residential location decisions the urban poor make in choosing to settle in inner-city areas. This information helps this study to identify areas that the urban poor consider to be strategic for settlement; the mechanism this study proposes in Chapter 6 could deliver this land at prices that are affordable to the urban poor.
134 Municipality, Urban LandMark and KZN DoHS suggested that high transportation costs nearly wiped- out any savings in land costs. The informants from eThekwini Municipality and Iyer indicated that once a commute surpassed the 12-15km range, the increase in transportation costs usually outweighed the savings on housing costs. The results in Table 5.12 on page 125 show that about 89 per cent of the economically active households living in informal settlements on Lacey Road, Havelock Road and Sir Kumar Reddi Road were located less than 10km from their work places. About 47 per cent of these workers walked to work because their places of residence were in close proximity to workplaces.
Table 5.11Percent distribution of households by housing and transportation costs Costs as a percentage of household income
(%) While living in housing at
the urban periphery While living in informal settlement in the inner-city Housing costs
10 and under 69 87
11 to 20 23 11
21 to 30 5 2
31+ 3 -
Total 100 100
Number of households 423 423
Transportation costs
10 and under 2 61
11 to 20 78 24
21 to 30 17 13
31+ 3 2
Total 100 100
Number of households 423 423
Combined housing and transportation costs
30 and under 21 92.9
31-60 77 7.1
61+ 2 -
Total 100 100
Number of households 423 423
Source: Field Survey (2018)
Table 5.12Distribution of households by mode of transport and distance to place of work or business
Transportation Informal Settlement
Lacey
Road Havelock
Road Sir Kumar
Reddi Road Frequency Percent Distance to place of work or business
1km-5km 22.2 50 37.5 103 35.8
6km-10km 68.9 35 54.2 154 53.2
No fixed location 4.4 7.5 4.2 16 5.5
Home based 4.4 7.5 4.2 16 5.5
Total 100 100 100 100
No. of households 119 106 64 289
Mode of transport to place of work or business
Walk 31.1 65 45.8 135 46.8
Public Taxi 68.9 35 54.2 154 53.2
Total 100 100 100 100
No. of households 119 106 64 289
Source: Field Survey (2018)
135 Members of Abahlali base Mjondolo who lived in the three study sites also mentioned that they chose to reside in informal settlements close to workplaces because they offered housing opportunities at a low cost. Households in these settlements indicated that the savings they anticipated to make from the low housing expenses would help to lift them out of poverty. As previously mentioned in Section 5.12, most of these households were labourers with low-pay entry-level jobs. Thus, members of Abahlali base Mjondolo informed the researcher that any savings they made on housing and transportation expenses would cover non-housing costs.
In order to propose strategies that could deliver low-income housing in areas low-income households establish informal settlements in, the study had to understand the extremely precarious situations that inspired their decisions to migrate to eThekwini Municipality and establish residence in these locations. Hence, it was necessary for this study to gather data on reasons that inspired them to migrate and establish informal settlements in the inner-city areas. The results shown in Table 5.13 indicated that between 80 to 93 per cent of the various household types considered distance from workplace as the primary reason for their choice of residential location.
Table 5.13 A summary of preferred residential location criteria of households in informal settlements Residential location criteria (%) Housing
cost Distance from
Workplace Accessibility to
Attribute Member Percent Retail
stores Educational
centres Health
centres Public transportation Household
Size Single 6.9 100 92.9 46.4 17.9 3.6 78.6
Couple 35.6 100 90.7 61.9 10.3 7.2 73.2
3-4 44.4 100 84.2 62.6 71.3 12.3 71.3
4+ 13.1 100 79.4 55.9 88.2 14.7 73.5
Average Monthly income
R2,100 51.9 100 85.8 64.7 58.3 12.3 70.6
R3,700 29.4 100 92.8 47.8 42.0 7.2 58.0
R6,900 18.8 100 80.7 59.6 33.3 7.0 98.2
Average 100 86.6 57.0 45.9 9.2 74.8
Source: Field Survey (2018)
The informant from eThekwini Municipality’s Economic Development Unit indicated that residents of informal settlements migrated to the municipality for economic reasons. The results in Table 5.14 show that about 81 per cent of households in informal settlements on Lacey Road, Havelock Road and Sir Kumar Reddi Road moved to these settlements to locate close to job opportunities, which suggested a strong association between the urban poor’s place of residence and workplaces. The residents of the informal settlement on Sir Kumar Reddi Road indicated they were predominantly economic migrants who preferred to locate close to work opportunities in the service and manufacturing industries in the harbour, Congella, Maydon Wharf, Umbilo, Rossburgh, Bayhead and Jacobs.
136 The study was also interested to find out from residents of informal settlements on Lacey Road, Havelock Road and Sir Kumar Reddi Road their places of origin and length of stay in these settlements.
Results shown in Table 5.15 indicate that about 65 per cent of households in the three study sites originated from KZN while 23 per cent were from Eastern Cape and 8 per cent were foreign immigrants. The results also show that about 95 per cent of households living in these settlements were resident in eThekwini Municipality by 1994. About 65 per cent of households in the three study sites have stayed in the settlements for a period of more than five years. Thus, the results suggest that
Table 5.14Reason for moving to eThekwini and the informal settlement
Reason for moving Informal Settlement
Lacey
Road Havelock
Road Sir Kumar
Reddi Road Frequency Percent To eThekwini Municipality
Seek work 75.8 78.3 94.1 341 80.6
Better education 15.2 13.3 5.9 53 12.5
Moved with family 9.1 5 - 24 5.6
To get married - 1.7 - 3 0.6
Low level of development in home country - 1.7 - 3 0.6
Total 100 100 100 100
To the informal settlement Push factors
Unaffordable to own/ rent formal house 81.8 65 76.5 315 74.4
Forced to sell house - 1.7 - 3 0.6
Lack of privacy in rented or shared rooms 1.5 1.7 - 5 1.3
Loss of employer-provided shelter 7.6 5 5.9 26 6.3
Displacement: informal settlement upgrading 3 20 2.9 40 9.4
Rural poverty and unemployment 4.5 5 14.7 29 6.9
Political or personal conflict 1.5 1.7 - 5 1.3
Total 100 100 100 100
Pull factors
Good location near to jobs and amenities 65.2 41.7 52.9 342 80.9
Cheaper housing related expenses 7.6 13.3 14.7 20 4.7
Swift access to land at low cost 6.1 13.3 14.7 18 4.3
Moved with partner 1.5 - 2.9 3 0.7
Close to family members & friends 13.6 1.7 14.7 16 3.8
Affordable rent 1.5 21.7 - 15 3.5
Possibility of getting free public housing 4.5 6.7 - 8 1.9
Availability of consumer market for informal business - 1.7 - 1 0.2
Total 100 100 100 100
No. of households 174 159 90 423
Source: Field Survey (2018)
these households have adverse possession rights to use, occupy and access a piece of land they have occupied for a continuous period of more than five years. Such rights are protected by the Interim Protection of Informal Land Rights Act 31 of 1996. Hence, these households have a right to be protected from eviction unless directed by a court order. This implies that both the landowner and the occupants have to come to an agreement on compensation that benefits both parties. Hence, the
137 argument of Cooperative Game by John Nash is applicable and is used by this study to guide the proposed mechanism that could deliver AURL for low-income housing.
Table 5.15Percent distribution of households by place of birth, citizenship and residence
Characteristic Informal Settlement
Lacey Road Havelock Road Sir Kumar Reddi Road Frequency Percent Province of Birth
Outside South Africa 15.2 - 8.8 34 8.1
KwaZulu-Natal 60.6 68.3 67.6 275 65
Eastern Cape 18.2 28.3 23.5 98 23.1
Free State 4.5 1.7 - 11 2.5
Western Cape 1.5 1.7 - 5 1.3
Total 100 100 100 100
No. of households 174 159 90 423
South African Citizenship
Yes 93.7 100 91.2 389 91.9
No 6.3 - 8.8 34 8.1
Total 100 100 100 100
No. of households 174 159 90 423
Period of move to eThekwini Municipality
Resident by 1994 88 100 100 402 95
1995-2000 1.5 - - 3 0.6
2001-2010 1.5 - - 3 0.6
2011-2015 4.5 - - 8 1.9
2016 4.5 - - 8 1.9
Total 100 100 100 100
No. of households 174 159 90 423
Length of stay in the informal settlement
Less than 5 years 33.3 50 14.7 151 35.6
6-10 37.4 31 63.1 145 34.3
11+ 29.3 19 22.2 127 30.1
Total 100 100 100 100
No. of households 174 159 90 423
Resident since 2011 in the informal settlement
Yes 66.7 50 85.3 272 64.4
No 33.3 50 14.7 151 35.6
Total 100 100 100 100
No. of households 174 159 90 423
Source: Field Survey (2018)