South Africa’s youth may be entering the property market later than previous generations — but when they do, they’re doing it on their own terms. From flexible co-living spaces to joint bonds with friends, Gen Z and Millennial buyers are challenging the old rules of homeownership, says Bradd Bendall, BetterBond’s national head of sales.
Recent data from BetterBond and Lightstone shows that buyers under 35 now account for nearly a third of all residential property transactions, with first-time buyers — 69% of whom are under 35 — dominating home loan approvals.
“Younger buyers are still very active in the home loan space, even if they’re waiting a bit longer to make their first purchase,” says Bradd Bendall, BetterBond’s National Head of Sales. “They’re approaching property investment with a more considered, flexible mindset.”
Lightstone data shows that buyers aged 20 to 35 accounted for nearly a third of all residential property transactions in 2024, making them the second-largest buyer group after those aged 36 to 50.
BetterBond data, meanwhile, reveals the average age of a first-time buyer is now 37, suggesting that many are choosing to wait until they are financially stable before stepping onto the property ladder. Yet they are still a force to be reckoned with: FNB reports that first-time buyers made up nearly 68% of all bond approvals in April 2024, with 69% of those falling within the “youth” category.
Gen Z: digital-first and flexible
The younger cohort of this market — Gen Z buyers aged 20 to 28 — are especially tech-savvy and values-driven. They want homes that support smart technology, sustainability, and flexible living arrangements. “These buyers are open to alternatives like micro-apartments for lock-up-and-go living, or co-living spaces with shared amenities,” explains Bendall. “They’re also more likely to apply for joint bonds with friends or family to increase affordability — and many qualify for 100% loans.”
Gen Z prefers to manage their homebuying journey digitally — from affordability calculations to pre-approval and bond applications — often using BetterBond’s online tools.
Millennials: independent and investment – wise
Millennials (aged 29 to 44) are taking a different path — but they’re just as determined. “We’re seeing a strong trend among Millennial buyers, especially single black women under 40, who are choosing to buy property independently rather than wait for marriage,” says Bendall.
This group is strategic: they’re open to joint bond partnerships with friends, rentvesting (buying in affordable areas while renting where they want to live), and focusing on lifestyle over size. Many prefer smaller sectional title homes or apartments in mixed-use, security estates — especially in vibrant urban areas like Cape Town’s CBD. As research from audience research company GWI shows, Millennials want to invest in their health and wellness, lifestyle is an important consideration when it comes to buying a home, says Bendall. “The size of the property is less important than its location and access to amenities.”
Bigger budgets, bigger ambitions
Younger buyers are also spending more on property than they did last year. BetterBond’s application data shows that Gen Z buyers are now spending an average of R1.5 million — up almost 7% and Millennials are averaging around R1.25 million on a home purchase. Part of this increase is due to rising home prices, but improved income levels and a more favourable interest rate outlook play a hand too. Importantly, the transfer duty threshold has been raised to R1.21 million, making property more accessible to this group of buyers.
Market outlook
The rise of younger buyers — especially in the first-time buyer segment — is a strong driver of home loan activity and an encouraging sign of renewed confidence in the housing market. Their demand for flexible, affordable, and digital-first solutions is reshaping how developers design homes and how estate agents manage transactions, adds Bendall. For example, developers are increasingly including co-living spaces, energy-efficient features, and remote working hubs in new builds, while estate agents are streamlining the buying process with virtual tours, online bond calculators, and digital application tools.
“Today’s young buyers know what they want — and they’re not afraid to rewrite the rules to get there,” says Bendall. “That’s good news for the future of the South African property market.”
Source: thenewspaper.co.za