South Africans rushing to buy these homes

The demand for homes with separate cottages or flatlets is rising as families seek flexible living spaces for financial relief, rental income, or multi-generational support, though limited supply and rising costs make them increasingly scarce.

Pam Golding Properties noted that dual-living properties offer a number of benefits for homeowners.

This ranges from providing ageing parents with a self-contained space or giving young adults a stepping stone to independence to creating an additional income stream.

“There’s a growing preference for homes with a separate flatlet or cottage, particularly in Stellenbosch and Somerset West,” said Louise Varga, Pam Golding Properties area manager for Somerset West, Stellenbosch, Strand, and Gordon’s Bay.

“Many buyers are looking for properties that offer independent living spaces for family members, while others see the potential to earn additional income from a rental unit.”

They noted that the appeal is clear. Shared living eases financial pressure, retirees can stretch their savings while enjoying the company of loved ones, and younger generations can work towards financial independence without the immediate burden of homeownership.

Statistics South Africa estimated in 2022 that 32% of South African households were multi-generational.

Managing director of Only Realty Property Group, Grant Smee, estimated that this percentage likely increased during the extended interest-rate hiking cycle.

According to ooba Home Loans, the average age of home buyers in South Africa has increased.

A decade ago, applicants aged 24 to 33 accounted for 39% of applications at 39%.

“However, by 2024, this figure had dropped by 12% percentage points, highlighting the prevailing challenges of a tough economic climate,” ooba Group CEO Rhys Dyer told IOL.

While younger people are struggling to afford their own homes, older generations are struggling to afford retirement.

Growth House’s technical head, Jonathan Nel, noted that many South Africans are facing an increasing gap between their savings and the amount needed for a comfortable retirement.

On average, South African pensions replace only about 18% of a person’s final salary, which is significantly lower than the industry benchmark of 75% needed for a comfortable retirement.

Consequently, more than 90% of South Africans cannot afford to retire, and some rely on their children for financial support. This “sandwich phenomenon” leads to generational cycles of economic stress.

All of these factors create the perfect situation for intergenerational living.

Unfortunately, properties with separate flatlets or cottages are not necessarily easy to come by, Varga explained.

“Standalone cottages or self-contained flatlets are in high demand but are relatively scarce in the Helderberg and Stellenbosch areas,” she said.

“Unfurnished, pet-friendly one-bedroom units are especially sought after, and with limited supply, renters are often willing to take whatever they can find.”

In these areas, rental prices vary significantly, ranging from R9,000 to R24,000 per month, depending on the location and type of accommodation.

“Estates – where demand for dual-living is often highest – typically don’t allow dual-living options. However, Newinbosch in Stellenbosch is a rare exception,” Varga said.

“Here, the Courtyard homes – which are priced from R3.575 million for a two-bedroom, two-bathroom unit, with the option of an added one-bedroom, one-bathroom – can serve as a private living space for older or younger family members, or an income-generating rental apartment.”

Recognising the trend, some homeowners are adding separate living spaces to their properties, primarily for family use rather than rentals.

“Only a small percentage are doing short-term leases, especially in Stellenbosch, where council approval is required for short-term rentals,” she noted.

Beyond financial savings, the lifestyle advantages of multi-generational living are significant.

Parents benefit from an extra set of hands, whether for school runs or the occasional night out, and children enjoy the presence of grandparents who have the time to read, share stories, and simply be there.

“It’s no surprise that multi-generational living is on the rise,” Varga said.

“At its core, it’s about creating a home where different generations can support one another – financially, emotionally, and practically.”

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Dual-living properties