Market demand for micro-apartments among small families in Gauteng

Abstract

The continuous economic migration of single and young-headed households into urban centres (McLocklin, 2018) has caused smaller rental units to become more popular (Brinded, 2014). The housing market in South Africa is struggling to catch up to the increasing demand for housing. As a result of Gauteng being the economic hub of South Africa, inward migration into the province occurs monthly and as a response to this basic need the ‘Sustainable Human Settlements Department’ has the largest budget in the province (Gauteng Provincial Government, 2012). The average member size of South Africa’s single-family homes has increased from 2,08 million in 2001 (Quantec, 2001) to 3,8 million in 2011 (Quantec data, 2011). Single-families are defined here as one person families living in one home. In Gauteng, the number of single-family households has nearly doubled in the same period of time. The increase in smaller households has had a tremendous effect on the environment as well as the housing demand. This research report aimed at determining the demand for micro-apartments in Gauteng, by surveying within the three highest populated municipalities in the province. Given this research topic, along with the data collection and analysis, it is clear that the market is still sceptical of micro-apartments. There is not much support for micro-apartment units in Gauteng. The demand is small and on a limited scale. When contextualising this within the comments of the respondents, the notion is justified as many respondents still function within a culture of living in large, single dwelling units. Opportunity costs will need to be considered for those who might be willing to forgo the traditional size of an apartment for a micro-apartment if it is better located, it is more affordable and the amenities are better in the buildings.