Property ownership is being reshaped as the share of buyers aged 35 to 60 has climbed from around d 50% to 70%,
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Economic pressures and shifting lifestyle priorities make South Africans take longer to buy their first home.
This means that property ownership is being reshaped as the share of buyers aged 35 to 60 has climbed from around 50% to 70%, according to BetterBond data.
This means that the average first-time buyer is now 37 years old, up from 33 just a few years ago.
“For many, this decision is being delayed because of affordability challenges,” explains Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond.
“But it is also a lifestyle preference, as millennials often focus on establishing their financial independence and careers before settling down and investing in property.”
There is a clear “youth exit” from the market. Buyers aged 20-35 now account for only 30% of purchases (down from 41% a decade ago), Hayley Ivins-Downes, Lightstone managing executive real estate told "Independent Media Property" recently.
“The peak age for first-time buyers has shifted significantly into the mid-to-late 30s as economic pressure delay the transition from renting to ownership.”
Delayed property ownership a global phenomenon.
The shift to later homeownership is not unique to South Africa, notes Potgieter. He says property data shows that buyers are entering the property market later in many developed and developing countries around the world.
Last year, the average homebuyer age in the United States was 40. Five years ago, the American age average was much lower at 33. Local property research indicates that the percentage of buyers under 35 has dropped from 45% in 2000 to 30% last year.
The high interest rates and inflated living costs have definitely contributed to the older age of first-time buyers, notes Potgieter. He says findings outlined in the First 100 Paychecks Report by the UCT Liberty Institute of Strategic Marketing suggest that while buyers are only entering the market in their late thirties, they start thinking about applying for a bond much earlier.
The survey found that nearly 40% of home loan enquiries were from under-35s, suggesting strong early interest in property ownership, he says.
The consumer mortgage origination brand says that however, affordability remains a hurdle. It adds many applicants begin the pre-approval process but delay applying for a bond until they have saved enough for a deposit or feel financially stable.
The adjustment of tax brackets in line with inflation, together with increases to retirement deductibility thresholds and tax-free savings limits, helps protect disposable income and supports long-term financial resilience, Candice Mncwabe, Western Cape committee member of the South African Reward Association (SARA) told "Independent Media Property" recently.
She said while these measures do not fully resolve affordability pressures facing households, they reduce additional tax drag and ease some pressure on take-home pay.
“This is significant in a low-growth environment where employers are balancing cost sustainability with employee expectations.” said Mncwabe post the 2026 Budget Speech delivered by Finance Minister Enoch Godongwana last week.
In this budget, National Treasury proposed additional tax measures to ease the financial burden on households and businesses, by adjusting personal income tax brackets and rebates fully in line with inflation.
Employment uncertainty delays homeownership.
Employment uncertainty is another key factor delaying homeownership. South Africa’s high youth unemployment rate and the difficulty many young adults face in securing permanent, full-time employment make it harder to commit to a long-term financial obligation like a home loan.
Contract work, freelance income and job instability often result in buyers waiting longer before feeling confident enough to enter the property market, the group says.
The report also highlights the “failure to launch” phenomenon, says Potgieter. He says almost 50% of graduates surveyed said they only moved out of home two years after finding their first job. Often, this decision is motivated by family duty to contribute to the bond or household improvements for a few years before moving out, he says.
Fortunately, there are options available to younger buyers who would like to invest in property, Potgieter says.
“South Africa’s main banks offer a range of loan products that include bonds of as much as 110% for young professionals younger than 35 years of age.”
These bonds make it possible to buy a home without having a deposit. It could also cover the transfer and bond registration fees that need to be paid upfront. Buying in a new development or below the R1.21 transfer threshold will also make homeownership more accessible to younger buyers.
BetterBond’s data shows that the average income of first-time buyers is around R50 000. Based on the current prime lending rate, this would enable a new buyer to qualify for a bond of R1.5 million, requiring a monthly bond repayment of around R15 000.
The data also shows that the average purchase price for first-time buyers is R1.6 million, which could explain why younger buyers would delay homeownership for a few years until they could save enough for a deposit.
“The South African Graduate Employers Association puts the median gross graduate starting salary at R260 000 annually, or almost R22 000 monthly. This would allow a graduate to qualify for a bond of less than R1 million, well below the R1.6 million average value we are seeing for first-time buyers,” says Potgieter.
As FNB notes in its latest Property Barometer, this price segment remains sensitive to high real interest rates, and affordability concerns curtail buyer activity.
“Furthermore, many young professionals will first need to repay their student loans before they can consider adding a bond repayment to their monthly expenses. As a result, we are seeing more buyers waiting until they have been earning for a few years before entering the property market.”
There are, however, signs of improving financial resilience. Over the past four years, income growth among homebuyers has outpaced inflation. In the 31 to 40 age group, income increased by 0.6% over the past 12 months, according to BetterBond’s February Property Brief.
Deposit requirements are also trending downward. Although deposits rose slightly in January, they remain lower than two years ago. First-time buyers are currently paying 10% less than they were in 2024.
Financial realities are not the only factor influencing delayed homeownership. Many young professionals are prioritising travel and career mobility before settling down, explains Potgieter. “Flexibility and lock-up-and-go convenience are increasingly attractive, with renting offering geographical and financial freedom. Marriage and homeownership are often postponed in favour of educational and career goals.”
In addition, a growing number of younger South Africans are exploring alternative employment opportunities beyond the country’s borders. International work experience, whether temporary or long term, is increasingly seen as a way to accelerate career growth, earn stronger currencies and build financial resilience.
While this global mobility can delay local property ownership, it often strengthens buyers’ long-term purchasing power when they do choose to enter the market.
Concerns about the rising cost of living, as well as family obligations, have also contributed to the rise in multigenerational living, with family members pooling their resources to provide financial support.
While the timeline to homeownership may be getting longer, with buyers waiting until their late thirties before taking the leap, the desire to own property remains intact.
“Younger South Africans have not abandoned the dream of owning their own home, they are just approaching it more strategically; balancing career growth and financial stability with affordability.
“Lower interest rates and improved deposit requirements should encourage more younger buyers to prioritise their long-term property investment goals sooner,” Potgieter says.
Independent Media Property