Seniors now own 40% of SA's high-value homes

• South Africans over 60 own nearly 40% of homes valued above R500,000.
• Many retirees are staying in family homes rather than downsizing.
• Growing housing wealth among pensioners will shape future property ownership.

South Africa's mature homeowners are emerging as one of the country's most influential property market forces, with new data revealing that pensioners now own almost 40% of all residential property valued above R500,000.

The findings challenge the long-held belief that retirees typically sell up and move into retirement villages. Instead, many older South Africans are choosing to remain in their homes for longer, preserving wealth, supporting market stability and reshaping housing demand across the country.

According to LOOM Property Insights, while only around one in ten South Africans is aged 60 or older, this age group controls nearly half of the country's higher-value residential property market.

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"Far from exiting the property market in their retirement years, South Africa's mature homeowners remain key drivers of its growth and stability," says Bradd Bendall, BetterBond's National Head of Sales.

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Many have settled in coastal towns, lifestyle estates and inland retirement destinations, where they account for as much as 60% of residential ownership in some areas.

Supply and demand driving a new retirement trend

One of the biggest reasons retirees remain in conventional housing is the severe shortage of retirement accommodation.

According to LOOM, for every one home within a formal retirement development, there are approximately 30 homes owned by people over the age of 60 outside these developments. South Africa has only around 650 retirement villages, providing approximately 44,000 residential units, far below current demand.

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"The demand for well-located retirement developments continues to exceed supply, with many retirees facing lengthy waiting lists," says Bendall.

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Rather than moving into specialised retirement accommodation, many older homeowners are remaining in their existing homes, either by choice or because suitable alternatives are limited.

Longevity creates long-term market stability

The research also highlights how long mature homeowners are remaining in their properties.

Many purchased homes decades ago when affordability was stronger, deposits were lower and borrowing conditions were less restrictive.

As a result, they have accumulated substantial housing wealth over time. LOOM found that:

• 58% of homeowners aged between 80 and 85 have lived in their homes for 25 years or longer.
• Among homeowners aged 85 and older, that figure rises to 65%.

Older homeowners are also significantly more likely to own properties valued above R2 million, reflecting decades of capital appreciation.

Their long-term ownership reduces housing turnover while providing an important source of stability within the residential market.

Greater spending power and growing equity‍

BetterBond's lending data for the twelve months ending April 2026 shows mature buyers remain active participants in the market. Compared with the previous year: 

• Average buyer income increased by just over 8%.
• Average purchase prices also rose by more than 8%.
• Buyers over 60 purchased homes averaging around R2.3 million.

Many are downsizing in size without sacrificing value. Instead of moving into significantly cheaper homes, retirees are often purchasing smaller, higher-quality properties that better suit their changing lifestyles.

Years of capital growth have also enabled many mature buyers to build substantial equity, allowing them to pay large deposits and rely less on mortgage finance.

According to the latest FNB Estate Agents Survey, retirement accounts for 21% of all residential property sales linked to life-stage changes.

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"We are seeing mature homeowners choosing to hold onto their family homes as they downsize later in life," says Bendall.

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"This reflects strong financial stability among mature buyers, making them lower risk from a lending perspective."

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Changing property choices‍

LOOM's research shows that most retirees still prefer traditional housing. Among homeowners over the age of 60 who live outside retirement villages:

• 80% live in freehold homes.
• 20% live in sectional title schemes or lifestyle estates.

As South Africans live longer, these housing choices are creating new opportunities for developers. Future residential developments are increasingly expected to incorporate:

• Single-level living.
• Wider doorways and walkways.
• Walk-in showers.
• Smart-home technology.
• Healthcare support and ageing-friendly design.

Developers are also seeing growing demand for inter-generational lifestyle estates that combine quality homes with healthcare, recreation and community facilities.

Popular retirement destinations continue to include the Western Cape's West Coast, the Garden Route, and KwaZulu-Natal's North and South Coasts, where lifestyle, climate and affordability remain attractive.

Supporting economic stability

Mature homeowners are also helping underpin the resilience of South Africa's residential property market.

Because many own their homes outright, or carry relatively little debt, they are less exposed to interest-rate increases than younger homeowners.

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"As many mature homeowners own their properties outright or with minimal debt, they are largely insulated from interest rate fluctuations, which further supports housing market stability," says Bendall.

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Even during periods of economic uncertainty, they continue contributing through municipal rates and taxes, property maintenance, neighbourhood security initiatives and ongoing investment in their communities.

Summation

South Africa's over-60 generation is proving to be far more than a retirement market, it has become one of the country's most significant property-owning demographics.

Holding nearly 40% of residential property valued above R500,000, mature homeowners are preserving wealth, stabilising housing markets and influencing future residential development.

At the same time, this concentration of housing wealth highlights the growing intergenerational asset gap, with younger buyers facing increasing affordability challenges.

Yet, as these high-value properties are gradually transferred to future generations through inheritance and estate planning, one of the largest intergenerational wealth transfers in South African property history is already beginning to unfold, one that is likely to shape residential ownership patterns for decades to come.

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