Young South Africans are being locked out of the property market.
Image: Raphael Nast/UnSplash
The average age of first-time home buyers in South Africa now sits at 37 years of age when only a few years ago it was 33, says Bradd Bendall, BetterBond’s national head of sales, noting that affordability remains a key challenge.
The rapid later age of first-time home buyers shows that potential buyers are now waiting longer to buy a home as they work on consolidating their finances before committing to bond repayments.
“Affordability is one of the reasons why many South Africans are taking longer to buy their first home, with many opting to rent until they are in a position to afford the hefty transfer duties associated with a bond,” Bendall said.
He says the shift in the average age of homebuyers is the result of several interlinked factors, primarily centred around affordability and economic pressure.
Over the past few years, sustained high interest rates, increased living costs and rising property prices have made it harder for younger buyers to enter the market. As a result, Bendall said many prospective buyers have delayed their first-home purchase to consolidate their finances, grow their savings and improve their affordability.
Added to that it was recently noted that the take-home pay of only 15.8% of South Africans would be sufficient to be able to afford a property of R1.3 million in value
Nondumiso Ncapai, managing executive at Absa Home Loans in 2024, first-time home buyers contributed the most to their applications volume with more than half coming from this segment, followed by repeat buyers contributing around 40% and investors less than 10%.
"We have seen a continuous increase in solo female buyers making up about half of our total applications volume,” Ncapai said.
However, BetterBond said the good news is that as average incomes begin to rise, interest rates ease and transfer duty thresholds are adjusted, they have begun to see a renewed confidence in the market, particularly among first-time buyers.
Asked why fewer people were buying property in their twenties and early thirties, Bendall said the most pressing reason is that many young South Africans are still establishing financial stability: paying off student debt, saving for a deposit or working towards a stable income.
“At the same time, inflation and high living costs mean that disposable income is under pressure, making homeownership less accessible,” Bendall said.
He said that also, transfer duties and upfront costs such as legal fees and deposits are often overlooked and can be significant hurdles. “It’s no surprise, then, that younger people are choosing to rent while they save and work on improving their creditworthiness before committing to a long-term financial obligation like a bond.”
He said ideally, the mid-30s or even late 20s is a good time to buy property as this gives homeowners more time to build equity and long-term wealth.
“At an average of 37, we’re not dramatically off the mark, but it is a clear signal that people are entering the property market later than in previous years.
"That delay has a ripple effect: less time to benefit from capital appreciation or to upgrade homes as life circumstances change. The earlier buyers enter the market, the better positioned they are for long-term financial security.”
To improve South Africa's average age to buy property, Bendall said there are a few key levers we can pull which include continuing to ease interest rates: as lending conditions improve, younger buyers will find it easier to qualify for bonds.
He said the country must raise awareness around affordable housing options as many are unaware of the range of properties under R1 million, which now account for around 42% of all bonds they processed.
He said further raising the transfer duty threshold, or introducing subsidies for first-time buyers, would help enormously. Financial education, where younger consumers are educated on budgeting, credit scores and the true cost of buying a home could help demystify the process and build confidence, he said.
Adrian Goslett, regional director and ceo of RE/MAX said previously that homeownership, for example, can be significantly impacted by age, as it affects one’s ability to secure a home loan.
“Younger buyers typically have the advantage of longer repayment terms, which makes their monthly repayment amounts slightly more manageable. In contrast, older buyers, especially those nearing retirement, may face shorter loan terms – for example, 10 years instead of 20 years – due to the reduced earning window. This will push up the monthly repayments and can end up affecting how much they can qualify for in home finance,” Goslett said.
However, this does not mean that older buyers are excluded from securing a home loan as lenders may offer tailored solutions, such as shorter loan terms or requiring a higher deposit, to mitigate the increased risk. Older applicants with strong financial positions, substantial savings, and significant deposits can improve their loan approval chances.
Bendall warned that if affordability challenges persist and younger buyers are locked out of the market, the country risks increased pressure on rental markets, less long-term wealth generation among youth and potentially a shrinking base of future homeowners.
“From a broader housing and urban development perspective, this delays efforts to create inclusive, sustainable human settlements, where citizens have a stake in their communities. Homeownership is not just a personal financial milestone; it's a key pillar of social stability and economic growth,” Bendall said.
He said that fortunately, the latest trends are encouraging. “With bond application volumes up, average income growth in double digits and first-time buyer activity climbing back to 25%, we are optimistic that 2025 could be a turning point for South Africa’s property market.”
* GIven Majola is Independent Media's property writer.
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