These include investor scepticism as banks remain hesitant to finance micro-developments, seeing them as untested. Cultural resistance as many South Africans still view compact living as a downgrade and oversupply risks as Durban’s Umhlanga corridor already shows signs of co-living saturation.

“The danger is that we mistake a stopgap solution for a cure. Co-living can’t replace the need for broader housing reform, including faster planning approvals and incentives for mid-income developments.”

Geffen said industry leaders are split on whether this trend will last. While some predict co-living will grow to 15% of South Africa’s urban rental market by 2030, others argue it is merely delaying a reckoning with unaffordability.

“The real test is whether these models can evolve beyond student and young professional niches to serve families and older demographics. That’s when we’ll know if this is truly transformative or just a Band-Aid,” added Geffen

Geffen noted key market questions going forward include whether local government entities will relax density restrictions in a greater number of suburbs to enable more micro developments, whether these developments will be the turning point for inner city decay and whether more relaxed density zoning in wider areas will make it more affordable for buyers to get onto the property ladder.

“South Africa’s housing crisis won’t be solved by one solution alone.

“This trend isn’t a total fix, but for now, co-living and micro-apartments are to some extent rewriting the rules of urban residential design and offering a solution to younger professionals struggling to make ends meet with the immensely high cost of living in the country’s stagnant economy,” Geffen said.

Today’s savvy buyers are said to be embracing starter homes like one or two bedrooms, a single bathroom, and enough room to live well without the stress of major upkeep.

According to Jonathan Spencer from OneDayOnly.co.za, these homes typically range from 70m² to 116m², offering the perfect blend of comfort, affordability and personal style potential.

“Starter homes are the ideal launchpad for new homeowners. They tick all the essential boxes without overwhelming you financially. Plus, there’s more room in your budget to create a space that really feels like you,” Spencer said.

FAST COMPANY

#rentalproperty

Are Micro Apartments the Future of Urban Living in South Africa?