Problems Identified in the Modernization of Informal Settlements in Etxebini City

Contemporary residential architecture faces pressing issues of global housing shortages and growing urban populations. In practice, architects constantly experiment with new forms of collective housing, striving to create spaces for personal, family, and community development. The six unfinished projects presented here demonstrate various aspects of solving the problem of building density: relationships with existing and planned nature, availability of urban or suburban plots, creation of additional intermediate spaces that support collective life and mitigate the feeling of high density, as well as the possibility of reproducing densification models and connection to the host area.

In this selection, ArchDaily readers are presented with housing concepts from Costa Rica, the USA, Ukraine, Iran, Uzbekistan, and a modular prototype without a fixed location. Analyzing the six unfinished projects, one can find common difficulties in creating a vibrant atmosphere and neighborhood environment, as well as unique responses to climatic conditions, interaction with nature, and the distribution of private and common areas. Three projects were designed for urban densification to maximize the use of available land to integrate more people into the existing urban network. Given the lack of land, one of the proposed ideas expands possibilities through a floating residential complex project, while two other options opt for suburban collective housing, emphasizing a direct connection with surrounding vegetation.

Below are idealized housing solutions developed by six ArchDaily readers, which were submitted as images and brief descriptions.

Nuevo Cuscatlan, Costa Rica

The architectural firm Carazo Arquitectura presented the LTR1 project—a multifunctional residential complex spanning 60,265 m² in Nuevo Cuscatlan, in the San Salvador metropolitan area, El Salvador. The complex integrates over 400 residential units, a commercial zone, and a protected forest within a single hybrid building. The project implements the firm's research line known as Tropical Vertical Urbanism, which studies how dense vertical construction in tropical cities can integrate housing, commerce, ecology, and social life into a single interconnected system.

Kayan Float: Compact Floating Microhome for Urban Rivers / Khaled M. Abu Tam - KMA Atelier

In the rapidly growing city of Austin, rising property prices and constant urban expansion have exacerbated the housing crisis. Many people are forced to move to remote suburbs with limited public transport. The city faces a deficit of over 211,000 social housing units, and regulatory restrictions and high land costs hinder traditional expansion. This situation demands compact and highly efficient housing models that maximize spatial efficiency while minimizing carbon footprint and construction impact. In this context, communities of floating microhomes are proposed as a response to Austin's housing problems, as well as as a compact and reproducible urban prototype for coastal cities worldwide. By transforming underutilized waterways into habitable urban infrastructure, the project introduces a model of efficient microhousing that is affordable and adaptable. Factory planning minimizes material use and costs, while layouts optimize every square meter for integrating living, working, and leisure functions.

Onsen / AVR Development

The concept was built around preserving the pine forest and natural thermal waters, where the idea of daily rejuvenation is integrated into the lifestyle itself. The project is conceived for people who value the balance between activity and tranquility, working in a dynamic environment but needing regular physical and mental restoration without having to leave the city. The central element is the fusion of an urban quarter type (kvartal), suburban life, and a resort: placement within a closed quarter forms a protected inner forest core, while the architecture develops under the tree canopy, not competing with nature. This idea is supported by the Japanese philosophy of onsen—understood as a ritual of silence, water, and balance—expressed in the spa and thermal bath infrastructure and the integration of water into daily life.

Sabat House / Hamed Hosseini Studio

Among the architectural features of arid and hot regions of Iran, such as Kashan, are Sabats—arched covered walkways built along long paths to protect pedestrians from direct solar radiation. Beyond their ecological function, Sabats fostered social cohesion by providing comfortable places for gatherings and neighborly interaction. The Sabat project is located in one of Kashan's most historic urban networks. The plot was formed by combining several small parcels, allowing for more floors than neighboring lots. This vertical imbalance became the main design challenge, leading to the development of two different volumetric strategies to harmonize the building with the surrounding urban context.

SYS Modular Building / Office AT

The SYS modular building is a prototype ordered by Siam Yamato Steel co.,ltd. and designed by the Office AT studio. The project is based on a modular construction system where building components are prefabricated in a factory and quickly assembled on site, ensuring efficiency in both schedule and construction quality. The concept maximizes the potential of modular construction. Each module is designed with independent walls (no shared walls), which enhances natural ventilation and improves internal comfort. The system also offers great flexibility, allowing the building configuration to be easily adapted to plots of different sizes and conditions. The project intentionally remains simple, consisting of only two unit types: Type 1 (ground floor) and Type 2 (duplex). These modules are organized in an alternating and articulated pattern, creating gaps between them that simultaneously serve as terraces and ensure natural light and ventilation enter the building. Furthermore, this arrangement increases the privacy of each unit.

SUPERMAHALLA / LEVEL80 Architects

In a historic Uzbek city on the Silk Road, we reinterpreted high-rise buildings into the form of SUPERMAHALLA—a low-rise complex inspired by traditional mahallas. Four blocks define private courtyards for gatherings, mimicking a patchwork quilt. Seismic joints guide pedestrian routes, and mountain contours are used to maximize apartment placement. White facades contrast with terracotta 'windows', paying homage to the tradition of handmade ceramics, blending historical heritage with modern European style. Underground parking ensures the safety of terraces and children's areas. Comfort amidst urbanization: rooted in place, designed for people.

The eThekwini Municipality has appealed to housing departments at both the national and provincial levels for assistance in upgrading informal settlements within urban areas.

Committee Requirements and Challenges

A report prepared by the Committee on Housing, Engineering and Transport and presented to the eThekwini Executive Committee (Exco) called on the specified departments to develop short-term, medium-term, and long-term intervention plans to address the identified issues. The Municipality intends to discuss proposals with these departments regarding the improvement of the implementation process for the eThekwini housing provision program. Previously, the municipality's reports cited over 600 informal settlements.

The report highlighted that the municipality faces several difficulties stemming from its specific urban context, which negatively affects the successful completion of informal settlement upgrading projects. These complexities have led to delays, increased project costs, and limitations in achieving planned housing delivery targets.

List of Identified Difficulties

The Municipality listed problems such as rapid urbanization and settlement growth; shortage of suitable land; regulatory and legislative hurdles, rising costs, and project delays; relocation issues between areas, re-application for projects, community resistance, and social instability; difficulties with beneficiary registration and censuses; as well as infrastructure constraints and environmental risks.

It was noted that many informal settlements are located on private land, in ecologically sensitive zones, and on steep slopes unsuitable for formal construction. The Municipality stated that maintaining transit camps over time becomes a burden on the municipality because grant allocations do not provide funds for this, and also due to illegal connections creating obstacles.

Consequences and Expectations from Cooperation

The municipal report also indicated that these problems contributed to negative audit outcomes across several projects, including slowed implementation, failure to meet planned indicators, reduced scope of work, increased costs, prolonged stay in transit camps, and low quality of life in temporary resettlement sites. The Municipality hopes that engagement with the departments will help develop a phased approach to implementing large and overburdened projects, identify and implement alternative housing provision models, and conduct policy reviews.

Furthermore, the Municipality requires assistance in securing suitable and well-located land for human settlement development, close to all amenities or interests of the people, as well as in developing innovative financing mechanisms to support housing construction. The Municipality noted that without interventions, achieving the goal of timely and sustainable provision of adequate housing and basic services will remain a difficult task. It was reported that the department is reviewing its implementation strategies and, where necessary, adopting high-density housing typologies, while consultations with provincial and national departments continue to develop sustainable implementation models.

Public Representatives' Stance

Rose Cortes, Deputy Chairperson of the eThekwini Taxpayers Protest Movement (ERPM), stated that settlements have become the norm in urban areas. She noted that when the municipality's own committee describes this as structural problems year after year, it signals that upgrading is stuck in perpetual waiting rather than being a transition phase toward formal housing. Cortes expressed taxpayers' concern that 'informal' has become a euphemism for indefinitely postponed.

Cortes added that taxpayers bear the burden in several aspects, including the strain on services, as these settlements are often outside official accounting and infrastructure planning but still use the same water, electricity, and road networks for which taxpayers pay without cost recovery. She emphasized that taxpayers are effectively funding recurring project failures without the ability to monitor where the funds are going at the local level.

Cortes also pointed out that the residents of informal settlements are overwhelmingly working residents and taxpayers themselves. She stressed that the issues of beneficiary registration and inter-area relocation mentioned in the report carry real human costs, including family separation during relocations. She called for any intergovernmental proposals to include independent oversight of already allocated funds before requesting additional ones.

The quality and reliability of municipal services in South Africa are declining for many citizens. Reasons for this include aging infrastructure, insufficient maintenance levels, financial strain, and management issues that are outpacing population growth.

Differences Between Municipalities

A gap has widened between municipalities that manage effectively and those facing constant difficulties. This results in many rural communities, informal settlements, and small towns experiencing unreliable water supply, deteriorating sanitation, and limited waste collection, according to independent consultant Dianne Davis.

Dianne Davis notes that South Africa's municipal services reflect both progress and increasing strain. She emphasizes that since 2015, millions of households have gained access to electricity, plumbing, and improved sanitation thanks to ongoing investments in vital infrastructure. However, for many citizens, the quality and reliability of these services are falling due to a combination of aging systems, inadequate maintenance, financial problems, and administrative complexities that cannot keep pace with population growth.

Financial Burden and Service Restoration

According to Davis, rising municipal tariffs increase the burden on households. Many families are forced to pay twice: once through municipal fees and service payments, and a second time for private alternatives such as solar panels, water tanks, boreholes, and security systems.

The independent consultant believes that South Africa's problem is no longer just about expanding access, but about restoring stable service delivery. This requires competent leadership, preventative maintenance, transparent financial management, and increased accountability. She adds that with the right reforms, the country possesses the necessary technical knowledge, institutional foundations, and examples of local success to create municipalities that provide reliable, affordable, and sustainable services to every household.

Water Crisis and Investment

According to Old Mutual Alternative Investments, the water supply issue in South Africa is simultaneously a revenue efficiency and infrastructure problem. The manager of private alternative investments argues that every lost liter reduces the municipal income needed to maintain the network from which the leaks originate. This leads to pipe weakening, reduced revenue, delayed repairs, and accelerated wear and tear.

The company points out that practical and measurable opportunities exist for investors here. It lists solutions such as smart metering, leak detection, pipe replacement, pressure management, and performance-based models that can help municipalities reduce losses and improve service delivery. In the water sector, some of the most attractive investment opportunities may lie in improving the efficiency of existing systems.

Structural Changes in Construction

Meanwhile, Christo Owen van der Reyde, an associate professor at the Faculty of Economics and Management Sciences at the University of the Free State, notes that the construction sector, long a cornerstone of capital investment in South Africa, is undergoing a profound structural transformation.

He cites data from Statistics South Africa (Stats SA) showing that the industry's contribution to GDP has fallen from 4.2% in 2008 to approximately 2.3%. Total output has decreased from 156 billion rand in 2016 to less than 100 billion rand. Van der Reyde also notes a geographical shift in activity: Gauteng's share of construction revenue has dropped from 39% in 2020 to 35%, while the Western Cape's share has risen to 24%, reflecting a change in regional investment dynamics.

Cycle of Hardship in Construction

In the expert's view, South Africa's construction sector is in a difficult situation: declining investment suppresses production capacity, criminal activity on sites deters capital, and job fragmentation limits household consumer spending. To change this trajectory, decisive steps are needed: eradicating extortion on construction sites, expanding public-private partnerships (PPPs) to mitigate risks in large projects, and supporting the growth of small and medium enterprises (SMEs) to ensure long-term economic sustainability.