Young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (Youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles the likely reasons behind the shift.
While Youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21% while the Pension category (65 and older) for 6% (10 000). This is according to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property.
2024 Residential property purchases by age group
Number of properties bought by age of buyer in 2024
The graph below indicates that people are becoming active in the market at a slightly older age, a trend in other markets around the world. In 2014 (black) younger buyers were active in their late 20s and early 30s, peaking at just over 30. By 2019 (blue) the peak had shifted to the mid-30s, and by 2024 (yellow) the buying pattern had evened out.
Age of buyers in 2024, 2019 and 2014
On average, the Youth paid R1.15m for a house in 2024, less than Settled (R1.3m), Mature (R1.45m) and Pensioners (R1.55m). As would be expected, 69% of Youth were First Time Buyers (FTBs), as opposed to 42% for Settled, and just 27% for Pensioners
Interestingly, Youth FTBs outspent their older FTBs, paying R987k on average against R832k for Settled, R775k for Mature and R730k for Pension.
Although most younger buyers opted for Freehold (where the bulk of the stock is), Youth bought a higher proportion of Sectional Title properties than Settled did.
Youth more likely to buy in Sectional Schemes
Bonded purchases and price paid
Younger buyers were more likely to bond their properties (just over 70%) compared to just under 60% with Settled buyers (see graph below). In the graph “Prices paid”, we see just less than 60% of Youth buyers purchased homes for under R1m, with 17% buying in the R1m-R1.5m price band. Just 5% of Youth buyers paid R3m or more for a property.
Youth more likely to bond
Prices paid by youth in 2024
Youth buying patterns were similar to Settled patterns, with the peaks in the Mid and High Value areas. So, while the Youth spend was higher in the <R500k and R500k-R1m price bands, most properties were bought in the Mid to High price band areas and the buying patterns of Youth and Settled were similar (see graph below).
Youth and Settled buy in similar value areas
Suburbs attracting Youth buyers
Youth buyers were most active in Lesedi suburbs Impumelelo and Obed Ext 1 in 2024, where they paid, on average respectively, R179k and R160k for properties. Lesedi Municipality is in Gauteng, and Heidelberg, the seat of the municipality, was the capital of the South African Republic from 1880-1883, during the first war of independence.
Sandown in Milnerton, Cape Town, a new residential development known for its focus on security and high-standard of living, was the leading suburb in the above-R1m price band (average price paid of R1.7m). Belhar, part of Tygerberg in Cape Town, led the way in the R499k-R1m price band. Of the top 20, just three were in the under R400 price band, 11 were in the R400k-R1m price band, and six in the above-R1m price band.
Sell and stay out the market
Most Youth who bought another home paid more for it, but 65% of Youth who sold did not buy again. This may be for financial reasons, emigration, moving in with family or friends, or the next property was bought in the name of a company or trust
