*Monwabisi bought his first house when he was 45 years old, and blames “black tax” as the major reason for his path to property ownership.
He said his family’s obligations in the Eastern Cape delayed him.
“I’m the biggest earner in my family. I had to take care of my parents and my two sisters. I paid for the upkeep while I rented a flat here in Johannesburg. Buying my own house did not seem like a dream within reach. Things only changed once I started working my way up and earning more,” said Monwabisi.
Latest property data show that the average age of first-time homebuyers is now 37, up from 33 just a few years ago.
Economic pressures and shifting lifestyle priorities have reshaped the road to property ownership, with the share of buyers aged 35 to 60 climbing from around 50% to 70%, according to BetterBond data.
According to Monwbisi, he always felt the need to have his own home, “and every time I paid rent I felt like I was paying toward my landlord’s dream while mine was moving away”.
Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond, said that, for many, the decision to buy property is being delayed due to affordability challenges.
“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”, Potgieter said.
He said this was not unique to SA, as similar data has shown the same in other developing countries. High interest rates and inflated living costs have definitely contributed to the older age of first-time buyers, said Potgieter.
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 30s, they start thinking about applying for a bond much earlier. The survey found that nearly 40% of home loan inquiries were from under-35s, suggesting strong early interest in property ownership.
“However, affordability remains a hurdle. 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,” said Potgieter.
Employment uncertainty is another key factor delaying homeownership.
SA’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.
Potgieter said in most cases, most graduates move out of their parents’ house two years after graduating, and this decision is influenced by family duty to contribute to household improvements before leaving.
Fortunately, there are options available to younger buyers who would like to invest in property, noted Potgieter.
“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.
BetterBond’s data shows that the average income of first-time buyers is around R50,000, enabling a new buyer to qualify for a bond of R1.5m with a monthly bond repayment of around R15,000.
“Meanwhile, 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 R1m below the R1.35m average value we are currently seeing for first-time buyers,” said Potgieter.
He said many young professionals will first need to repay their student loans before they can consider adding a bond repayment to their monthly expenses.
Financial realities are not the only factor influencing delayed homeownership, as many young professionals are prioritising travel and career mobility before settling down, explained Potgieter.
“Flexibility and lock-and-go convenience are attractive, with renting offering geographical and financial freedom. Marriage and homeownership are often postponed in favour of educational and career goals.”
While the timeline to homeownership may be getting longer, with buyers waiting until their late 30s before leaping, 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,” concluded Potgieter.
He said lower interest rates and improved deposit requirements should encourage more younger buyers to prioritise their long-term property investment goals sooner.
*Not his real name
