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 the age of 35 – are prioritizing first home ownership, viewing it as a foundation for their future. financial Freedom and long-term wealth creation.
Today's young home buyers are thinking about property ownership very differently than previous generations. For many people, buying a home is no longer something that happens after settling down. Instead, it is becoming one of the first major financial The decisions they make as they build 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.
While affordability pressures, rising property prices and macroeconomic uncertainty might be expected to encourage greater levels of co-buying, the opposite appears to be true. Across provinces, demographic groups and age categories, 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 figures show that homeownership is increasingly becoming an earlier age financial Goals rather than milestones after marriage and parenthood.
Banks are embracing 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 home buyers with strong credit profiles.
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 that applications for cost-inclusive loans – where borrowing more than 100% of the property value to cover transaction costs – has 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 number of applicants over the age of 34 increased by 0.2% to 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 buyers aged 25 to 34 wanting zero-deposit finance increased from 51.2% to 59.7%; By comparison, the fastest growth was among applicants over the age of 34, rising from 38.7% in 2016 to 56.1% in 2026.
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 home buyers. 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. Apartments, townhouses and security estates generally offer more affordable routes 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%.
While the increases may seem 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 increasing.
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 R1.5 million and can exceed R2 million in some areas.
South Africa's youth market is highly urban. 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 purchases were only 8.6% among buyers aged 18 to 24 and 5.9% among buyers aged 25 to 34. Although these figures have increased from 2016 levels, they remain relatively small compared to owner-occupier purchases; The mainstream youth market appears to be 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 home buying desire, but a generation adapting to very different circumstances.
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 home buyers are more likely to purchase on their own, more likely to purchase in urban centers and more likely to prioritize a primary residence over an investment property. They are making different compromises with previous generations, but the underlying aspiration remains unchanged.
The future of South Africa's property market will be shaped by these home buyers. Understanding how they live, work and buy property is becoming important for everyone from developers and lenders to estate agents and policy makers.
* Lomborg is the CEO of Oba Home Loans.
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