Ekonomiska och sociala effekter av småskaliga hyresbostäder : En fallstudie i kåkstaden Langa, Kapstaden, Sydafrika

Historical inequalities and increasing urbanization have resulted in an extreme housing shortage in South Africa, particularly among low-income households. Despite various government-led initiatives, efforts have been insufficient, resulting in a significant expansion of informal settlements with inadequate living conditions. South Africa’s housing situation highlights the relevance of the United Nations Sustainable Development Goals (SDGs), particularly Goal 1 - No Poverty, Goal 10 - Reduced Inequalities, and Goal 11 - Sustainable Cities and Communities. Housing thus plays a crucial role in reducing poverty, fostering economic growth, and supporting the development of resilient and inclusive societies. In this context, small-scale rental housing (SSRH) has emerged as a viable alternative, with private actors providing affordable, sustainable, and high-quality housing. This sector and the ongoing housing crisis illustrate the need for a deeper understanding of the potential and impact of this housing solution. The study examines how small-scale rental housing contributes to social and economic sustainability in rapidly growing urban areas, through a case study on the South African company Bitprop. The company builds and manages small-scale rental flats in homeowners' backyards within townships during a ten-year agreement. After this period, the homeowners will receive the whole rental income and manage the rental flats independently. The findings are based on interviews, informal discussions, and observations. The authors were based in Cape Town during February 2025 to collect empirical data, achieve a deeper understanding of the housing situation, and gain practical insights into Bitprop’s operations. The study highlights small-scale rental housing as a key factor in expanding the supply of affordable housing and demonstrates how private actors play a role in addressing the housing crisis. Bitprop shows how prosperity can be fostered for homeowners in Langa through a model centered around their active involvement. The initiative promotes economic empowerment and stability, while enabling homeowners to develop property management skills and operate as property entrepreneurs. The study identifies a lack of political support and regulatory barriers in the construction process as significant challenges to scaling this type of initiative. Furthermore, collaboration and support among stakeholders are found to be essential for expanding the model. Suggestions are provided on how the model can be streamlined to strengthen homeowners’ trust and ensure sustainable rental flats. Hopefully, the findings will contribute to a deeper understanding of how social entrepreneurship can drive progress in line with the SDGs.