Plans are underway to convert the Omaruru single quarters into an open market.
Omaruru Mayor Vincent Kahua says the development will reduce the 70% unemployment rate among the youth in the town.
The Omaruru Municipality relocated over 30 households last year from the dilapidated single quarters to Extensions 5 and 6 on the municipality's Kapekaha Road.
The decision to demolish the N$2.2 million single quarters was taken in 2014 after it was discovered that the houses were poorly constructed by a local contractor between 2006 and 2013.
Kahua explained they are faced with having to provide a market or business hub for the residents who were relocated from the single quarters.
He observed that demand for housing is high in town, adding that the municipality is busy working on its strategic plan, which would contain a proposed solution.