Young South Africans are increasingly choosing to buy homes on their own, signaling a profound change in how the country's newest generation of homeowners approach both property ownership and adulthood.
Rather than waiting for marriage, children or other traditional life milestones before entering the property market, young home buyers (classified as those under 35) are prioritizing first home ownership, seeing it as the foundation of financial independence and long-term wealth creation.
“Today’s young home buyers are thinking about property ownership very differently than previous generations,” says Gavin Lomberg, CEO of Oba Home Loans. “For many people, buying a home is no longer something that happens after they settle down. Instead, it has become one of their first major financial decisions as they make their careers, establish their independence and create stability for the future.”
Single home buyers now dominate the youth market
One of the clearest trends emerging from the OBHA home loan data is the increasing dominance of single-applicant home loan applications. Despite affordability pressures, rising property prices and widespread economic uncertainty, young South Africans are increasingly purchasing property without a partner.
In 2026, 76.9% of all home loan applications from home buyers aged 18 to 24 were submitted by single applicants, up from 68.4% a decade ago. Among home buyers aged 25 to 34, the figure increased from 56.6% in 2016 to 65.5% in 2026. Perhaps most surprising is that the biggest increase was among home buyers over the age of 34, where single applications increased from 57.1% to 67.3% over the same period.
“Although affordability pressures, rising property prices and macroeconomic uncertainty might be expected to encourage greater levels of co-buying, the opposite appears to be true,” says Lomberg. “Across all provinces, demographic groups and age ranges, single applicants continue to dominate the market.”
The data also shows that many home buyers are entering the market before starting a family. Among homebuyers ages 18 to 24, 92.5% of applications in 2026 came from individuals without dependents. For those aged 25 to 34, the proportion rose from 63.6% to 72.2% over the past decade, while buyers over 34 without dependents rose from 49.0% to 57.7%.
Overall, these data show that home ownership is increasingly becoming an early-life financial goal rather than a milestone after marriage and parenthood.
Banks are adapting to the new generation of home buyers
Despite entering the property market on a single income, many young home buyers are still looking for pathways to home ownership. According to Lomberg, this is partly because lenders have adapted to the realities of a generation that often has strong earning potential but limited savings.
“Zero-deposit home loans are widely available to young homebuyers with strong credit profiles,” he says.
Data from OOBA Home Loans highlights a significant increase in the use of both zero-deposit and cost-inclusive loans over the past decade, with Lomberg saying applications for cost-inclusive loans (where borrowing more than 100% of the property value to cover transaction costs) have increased among young home buyers.
“Among buyers aged 18 to 24, the share of cost-inclusive loan applications increased from 0.9% in 2016 to 16.1% in 2026, while among applicants aged 25 to 34 it increased from 0.4% to 14.6%. By comparison, the uptake among applicants aged over 34 increased from 0.2% to It became 7.0%.”
At the same time, Lomborg says demand for zero-deposit loans has also strengthened. “While applications from buyers aged 18 to 24 remained broadly stable at around 53%, the proportion of applications from 25 to 34 year olds seeking zero-deposit finance increased from 51.2% to 59.7%,” he said, adding that the fastest growth by comparison was in applicants aged over 34, which rose from 38.7% in 2016 to 2026. It increased to 56.1%.
This trend reflects the growing affordability challenges faced by first-time home buyers who can manage monthly payments but struggle to save for deposits, transfer fees and legal fees.
“These products have become especially important for first-time homebuyers,” says Lomberg. “As a result, we continue to see high loan-to-value ratios in this segment.”
Urban living shapes property choices
The increasing number of single home buyers is also influencing the types of properties young South Africans choose.
“Sectional-title properties have increasingly become the default entry point for many young home buyers,” explains Lomberg. “Appartments, townhouses and security estates generally offer a more affordable route into home ownership, while also keeping buyers close to employment opportunities and established infrastructure.”
Applications for sectional-title properties increased across all age groups between 2016 and 2026. Among buyers aged 18 to 24, cross-title purchases increased from 50.5% to 52.2% of purchases. For buyers aged 25 to 34, the figure increased from 39.6% to 41.5%, while among home buyers over 34 it increased from 28.4% to 30.9%.
Lomberg notes: “Although the increases may appear modest, they reflect broader demographic and lifestyle changes. As more home buyers purchase homes independently and delay having children, demand for smaller, more affordable and centrally located housing is growing.”
This trend is particularly evident in high-cost areas such as the Western Cape, where the average purchase price for home buyers aged 25 to 34 often exceeds R1.5m and can even exceed R2m in some areas.
“South Africa's youth market is highly urban,” says Lomberg. “Urban jobs, urban lifestyles and urban housing stock all favor smaller, more affordable homes.”
Developers have responded by increasing the supply of compact apartments, mixed-use developments and secure residential complexes that specifically cater to young professionals and first-time homebuyers.
Home ownership remains a priority
Despite growing conversations about 'rentvesting', property portfolios and buy-to-let investments, data shows that the majority of young South Africans focus on buying homes to live in rather than investment properties.
“In 2026, investment purchase applications were only 8.6% among buyers aged 18 to 24 and 5.9% among buyers aged 25 to 34,” Lomberg says. “While these figures are up from 2016 levels, they are relatively small compared to owner-occupier purchases.” He said the mainstream youth market is looking for stability, independence and long-term wealth creation.
The next generation is rewriting the rules
“What we are seeing is not a decline in willingness to buy a home, but a generation adapting to very different circumstances,” Lomberg says.
“Overall, these trends point to a housing market that is being reshaped from the bottom up by a new generation of homebuyers. Today's young homebuyers are more likely to shop on their own, more likely to buy in urban centers and more likely to prioritize a primary residence over an investment property. They are making different trade-offs to previous generations, but the underlying aspiration remains unchanged.”
He concluded: “The future of SA's property market will be shaped by these home buyers. Understanding how they live, work and buy property is becoming increasingly important for everyone from developers and lenders to estate agents and policy makers.”
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