Big shift in South Africa’s property market

South Africa’s housing market is showing a clear generational shift, with first-time buyers entering the market much later than in the past as young buyers struggle with an affordability gap and economic pressures.

This is according to Lightstone, which explained that South Africa’s property market has struggled to recover after the 2008 financial crash.

There was once a slow recovery, but that stalled around 2016. Since then, sales declined further during the COVID pandemic, with only a brief post-pandemic rally showing early signs of fading.

“International markets such as the United Kingdom, United States and Australia have rebounded more strongly post-2008, while South Africa’s recovery has been more gradual,” said Lightstone Managing Executive Hayley Ivins-Downes.

“The data tells a story of resilience amid persistent headwinds from affordability pressures to economic uncertainty.”

One group which has been particularly affected by the current state of the housing market is young South Africans, who are no longer buying properties at the same rates.

Lightstone analysed the rising age of buyers since 2000, to see how affordability has impacted the age of first-time homebuyers.

They excluded subsidised properties from our South Africa analysis, as their irregular introduction skews cyclical trends.

Lightstone’s focus was on single-property full-share transfers, compared with transactions involving only natural buyers.

They define ownership by “natural persons” where the property is registered in the name of one or more individuals, as opposed to being registered in the name of a company or trust.

“We’re seeing a global trend of first-time buyers entering the market later in life, and South Africa is no exception,” Ivins-Downes said.

“The steady ageing of homebuyers highlights the growing affordability gap for younger buyers. While affordability plays a major role, lifestyle and economic factors are equally shaping when and whether young people buy homes.”

Economic realities push young buyers out

Apart from flat or falling sales, buyers of residential properties in South Africa are getting older. Put another way, younger people are not buying properties as they did in the past.

The trend of first home ownership at older ages is not unique to South Africa and, according to media reports, is a global phenomenon in many developed and some developing countries.

It’s a trend that strongly correlates with the lack of affordability of housing, particularly in terms of the price of a home and living expenses compared to income.

Young people also struggle to save for deposits, and mortgage and loan terms make properties even more unaffordable. Economic uncertainty also plays its part.

Life course changes in younger generations, who tend to marry later, have fewer children, spend more years in education, and typically have more debt, also contribute to the postponed property buying.

Lighstone said policies such as offering assistance to first-time buyers, lower required deposits, more supply of affordable housing, and improving access to credit can help shift buying patterns.

However, even in markets with such policies, the average age of buyers is still rising. This trend is not good news for the housing market, and it is even more concerning in a country like South Africa, with an increasingly young population.

Over the past 25 years, the percentage of homebuyers over 60 has doubled, while those between 35 and 60 have increased from around 50% in 2000 to 70% in 2025.

Buyers under 35 have dropped from around 45% in 2000 to just 30% in 2025. In 2000, buyers aged 35 and under accounted for over 80,000 (47%) of transactions. By 24, however, this had fallen to 53,000 (30%).

Lightsone pointed out that this decline raises the question of where these young South Africans are living now, since they aren’t buying homes.

Anecdotal stories suggest that more people are renting, living with their parents, or in informal premises. Additionally, young South Africans who travel abroad to work are staying away longer or not returning at all.

Taking the 35-60 year old category as the benchmark, Lightstone found that buyers under 35 were paying 12% less on their properties in 2000, and 20% less in 2025.

Conversely, buyers over 60 spent just marginally more on their properties in 2000 compared to the 35-to 60-year-old category. However, by 2025, the premium had increased to around 15%.