Household expenditure affordability thresholds for housing, water, energy and transport in South African human settlements

Abstract

Human settlements and housing are a part of people’s material living conditions and contribute directly to their life choices. Human settlements that are poorly located, constructed and serviced force households to spend a larger proportion of their income on transport, energy and water. This leaves less for food, education and health, seeking employment, starting a business or saving for a pension or a house. In poor families, this reduces access to education opportunities, increases susceptibility to ill health and disease and makes it more difficult to escape the cycle of poverty. Therefore a sustainability indicator of human settlements and housing is the amount or proportion of household expenditure on transport, water and energy. The paper carries out a literature review to understand patterns of household income and expenditure. Household expenditure indicators and benchmarks are reviewed to propose benchmarks for sustainable housing and settlements. These are critically reviewed in relation to South African human settlement data to establish their relevance and applicability. Results are discussed to ascertain implications for human settlement and housing policy and recommendations for further research developed.