More young South Africans buying Property: On their own terms

Key Takeaways

• Youth now make up nearly a third of all home buyers in South Africa
• Gen Z and Millennials are prioritising flexibility, lifestyle, and independence
• 69% of first-time bond approvals are classified as youth buyers

Young South Africans are not giving up on property ownership, they’re just entering the market differently. ‍‍

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‍According to Bradd Bendall, National Head of Sales at BetterBond, “We’re seeing more youth applying for bonds, but often later in life and with more financial independence.”

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A Shift in Timing, Not Intent

Lightstone data shows that buyers aged 20 to 35 accounted for nearly a third of residential property transactions in 2024, second only to the 36 - 50 age group. BetterBond’s figures reflect a similar trend, with the average age of first-time buyers sitting at 37.

“High lending rates and economic pressure have delayed their entry, but young people still play a key role in the home loan market,” Bendall explains. In fact, FNB reports that youth - defined as under 35 made up 69% of first-time buyers and nearly 68% of all bond approvals in April 2024.

The Gen Z Approach: Tech, Flexibility, and Shared Ownership

This younger cohort, especially Gen Z (under 28), is tech-savvy, flexible, and values convenience. “They’re open to smart homes, energy efficiency, and micro-apartments or co-living setups,” says Bendall. Many explore joint bonds with friends or family, and use digital platforms like BetterBond to manage their entire application process online.

Millennials: Independence, Investment, and Urban Living

Millennials (ages 29- 44) are confident property investors, often buying as single individuals. “They’re breaking with traditional norms like marriage before homeownership,” says Bendall. Black women under 40 are a growing force in this space.

Many Millennials adopt strategies like rentvesting, buying in affordable areas while renting closer to work or lifestyle hubs.

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“Lifestyle and wellness matter more than square meterage. Access to amenities, work, and vibrant city life is key,” adds Bendall. Sectional titles, lifestyle estates, and secure lock-up-and-go units are in demand.

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Youth are spending more and strategically

According to BetterBond, Gen Z buyers are spending around R1.5 million on their homes, up nearly 7%, while Millennials average R1.25 million.

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“With the transfer duty threshold now raised to R1.21 million, it’s more feasible for young professionals to enter the market,” Bendall notes.

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The Way Forward

Despite economic headwinds, young buyers remain a critical engine for South Africa’s residential property sector. Their financial independence, digital fluency, and flexible approaches are reshaping homeownership. As interest rates stabilise and transfer duty reforms take hold, both Gen Z and Millennial buyers are set to play an even more dominant role in the years ahead.

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