Homebuyers in South Africa Find Better Affordability in Some Regions for the First Time

According to data from ooba Home Loans, young South Africans under the age of 35 are increasingly becoming home buyers as single applicants. This trend indicates a shift towards earlier property ownership, driven by financial independence, urbanization, and changing life priorities. This trend is transforming the real estate market, increasing demand for sectional title apartments and flexible financing options.

Dominance of Single Buyers

Young buyers prefer to purchase homes independently, which suggests a profound change in the new generation's approach to property ownership and adult life. Instead of waiting for marriage, children, or other traditional life stages, people under 35 are prioritizing homeownership, viewing it as a foundation for long-term well-being and financial independence.

Data from ooba Home Loans shows a growing prevalence of mortgage applications submitted by a single applicant. Despite economic uncertainty, rising property prices, and affordability pressures, young South Africans are increasingly purchasing property without a partner. In 2026, 76.9% of all mortgage applications from buyers aged 18–24 were submitted by single applicants, up from 68.4% a decade ago. Among buyers aged 25–34, the share of single applicants grew from 56.6% in 2016 to 65.5% in 2026. The most significant growth was noted among buyers over 34, where the proportion of single applications increased from 57.1% to 67.3% over the same period.

Priority on Home Ownership

These figures also show that many buyers enter the market before starting a family. Among buyers aged 18–24, the vast majority, specifically 92.5% of applications in 2026, were from individuals without dependents. For the 25–34 age group, this percentage increased from 63.6% to 72.2% over the last decade, and among buyers over 34 without dependents, it rose from 49.0% to 57.7%. This suggests that homeownership is becoming more of an early financial goal rather than a stage after marriage and parenthood.

Banks Adapting to New Buyers

Although many young buyers enter the market with a single income, they are finding ways to acquire property. According to Lomberg, this is partly because lenders have adapted to the realities of a generation that often has high earning potential but limited savings. Zero deposit loans remain widely available for young buyers with good credit histories.

ooba Home Loans data highlights a significant increase in the use of both zero deposit and bundled expenditure loans over the past decade. Lomberg notes that applications for bundled expenditure loans—where the loan exceeds 100% of the property value to cover transaction costs—have sharply risen among young buyers. Among buyers aged 18–24, the share of such applications grew from 0.9% in 2016 to 16.1% in 2026, and among applicants aged 25–34, from 0.4% to 14.6%. Meanwhile, among applicants over 34, the growth was from 0.2% to 7.0%. Concurrently, Lomberg reports strengthening demand for zero deposit loans. While applications from buyers aged 18–24 remained relatively stable at around 53%, the share of applications from buyers aged 25–34 seeking financing without a deposit increased from 51.2% to 59.7%. The sharpest growth was among applicants over 34, who increased their share from 38.7% in 2016 to 56.1% in 2026. This trend reflects growing challenges with affordability for first-time buyers who can afford monthly payments but struggle to save for deposits, transfer duties, and legal fees.

Urban Housing Choices

The rise in single buyers is also influencing the types of property young South Africans choose. Sectional title apartments have become the primary option for many young buyers. Apartments, townhouses, and gated communities typically offer a more accessible way to become a homeowner and place buyers closer to workplaces and developed infrastructure. Applications for sectional properties grew across all age groups between 2016 and 2026. Among buyers aged 18–24, purchases in sectional title grew from 50.5% to 52.2% of applications. For buyers aged 25–34, this figure increased from 39.6% to 41.5%, and among buyers over 34, from 28.4% to 30.9%.

While these increases seem modest, they reflect broader demographic and lifestyle changes. As more buyers are acquiring homes independently and postponing childbirth, there is growing demand for smaller, more affordable, and centrally located housing. This trend is particularly noticeable in expensive regions like the Western Cape, where the average purchase price for buyers aged 25–34 often exceeds R1.5 million and can reach R2 million in some areas. The youth market in South Africa is predominantly urban. Urban employment, urban lifestyles, and urban housing stock favor small, affordable homes. Developers have responded by increasing the supply of compact apartments, mixed-use complexes, and secure residential areas specifically targeting young professionals and first-time buyers.

Prioritizing Home Ownership

Despite active discussions about 'rentvesting', property portfolios, and rental investments, the data shows that most young South Africans remain focused on buying homes for residence, not for investment. In 2026, investment purchases accounted for only 8.6% of applications among buyers aged 18–24 and 5.9% among buyers aged 25–34. Although these figures have risen compared to 2016 levels, they remain relatively small compared to owner-occupied purchases; the main segment of the youth market aims for stability, independence, and building long-term capital.

New Generation Changes the Rules

The observed situation is not a decline in the desire to own a home, but rather an adaptation of the generation to completely different circumstances. Collectively, these trends indicate that the housing market is being transformed from the bottom up by a new generation of buyers. Today, young buyers are more likely to purchase homes independently, more likely to choose urban centers, and more likely to prioritize a primary residence over investment property. They are making different choices compared to previous generations, but the fundamental aspiration remains unchanged. The future of the South African property market will be shaped by these buyers. Understanding how they live, work, and buy property is becoming increasingly important for everyone—from developers and lenders to real estate agents and politicians.

According to the National Housing Report for the first quarter of 2026 from the Remax property group, there is an increase in both first-time and returning buyers, even amid economic instability.

Price and Demand Dynamics

Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, reported that in the first two months of 2026, the average housing price reached a significant milestone, recording positive real growth for both first-time and repeat buyers through the BetterBond service.

Goslett noted that although the property market started 2026 in a strong position, geopolitical tensions led to a complication of the economic situation as the quarter progressed. He added that growing uncertainty put pressure on global inflation expectations, prompting central banks, including the South African Reserve Bank, to adopt a more cautious approach by mid-year.

Search for Affordable Housing

According to Goslett, monetary authorities paused the rate-cutting cycle at the January meeting due to the dual inflationary effect caused by rising oil prices and the depreciation of the rand. Affordability issues became even higher priorities for buyers. Since the average house price in the Western Cape is almost double the prices in other South African provinces, many buyers are expanding their search to more affordable regions where they can find better value for money.

This has led to a resurgence of interest in markets such as Gauteng, where relatively low prices continue to support demand. This shift in buyer behaviour is reflected in data from the national deeds registry, which shows that Gauteng accounted for 50.8% of all property transactions during the quarter, becoming the most active housing market in the country by volume. The province's strong performance played a significant role in the overall 7.47% increase in sales across South Africa, indicating that buyers are increasingly gravitating towards regions offering greater affordability and value. Goslett emphasized that price remains one of the key drivers of this shift in buyer interest.

The average sale price in the Western Cape for the first quarter of 2026 was R3,357,917, which is 72.1% higher than the average price of R1,951,230 in the rest of South Africa. In this context, many buyers are increasingly considering options outside the country's most expensive province.

Market Evolution and Young Buyers

The first quarter results indicate that the South African property market is not slowing down but transforming, and adaptability will be the defining characteristic of the market in the coming months.

Gavin Lomberg, CEO of ooba Home Loans, noted a trend where young South Africans are increasingly preferring to buy homes independently, signaling a change in the new generation of homeowners' approach to property ownership and adult life in general. According to him, for many, buying a home is no longer an event that happens after they have settled in; instead, it is becoming one of the first major financial decisions they make while building a career, gaining independence, and creating future well-being.

Lomberg also pointed out that one of the clearest trends identified by ooba Home Loans data is the growing prevalence of mortgage applications from single applicants. Despite affordability pressures, rising property prices, and general economic uncertainty, young South Africans are increasingly purchasing property without a partner. In 2026, 76.9% of all mortgage applications from buyers aged 18 to 24 were submitted by single applicants, compared to 68.4% ten years ago.

Lomberg concluded that while affordability pressures, rising prices, and general economic uncertainty might stimulate more joint purchases, the opposite is observed. Single applicants continue to dominate the market across all provinces, demographic groups, and age categories. Furthermore, the data shows that many buyers enter the market before starting a family. Among buyers aged 18 to 24, the vast majority, 92.5% in 2026, were without dependents. For the 25 to 34 age group, the share increased from 63.6% to 72.2% over the last decade, and for buyers over 34 without dependents—from 49% to 57.7%.