If you’ve spent any time on social media lately, you’ve probably seen a certain running joke about the property market. Apparently, the only way a Gen Z or Millennial can afford a house in South Africa today is if they inherit one, win the lotto, or find a genie in a bottle.
But for property practitioners on the ground, that humour is wearing a bit thin. The reality is that the vanishing first-time buyer is leaving a noticeable gap in the traditional commission pipeline. With fewer young homebuyers in South Africa able to secure bonds or match steep deposit requirements, real estate professionals are finding themselves working twice as hard to close deals.
Data from property intelligence firm Lightstone shows that youth homeownership in South Africa is under serious pressure. Young professionals are entering the market much later, making up a significantly smaller slice of the buyer pie than they did a decade ago.
Buyers aged 18 to 35 plummeted from 40% of purchases in 2014 to 30% in 2025. In absolute terms, this was a drop from 72,000 to 47,000 transactions. In non-subsidised sales, buyers under 35 decreased from 44.5% in 2005 to just 30.5% in 2025.
Despite this, Lightstone's analysis shows that homebuying remains an aspiration among this demographic. Young buyers still account for 30% of residential purchases, and 69% of them are first-time buyers trying to get a foot in the door.
A recent Prop Data poll found that 49% of property practitioners say the decline in younger buyers is impacting their business moderately to significantly.
The most immediate challenge is a slowing sales pipeline. According to Tim Greeff, CEO of Greeff Christie's International Real Estate, losing these buyers creates a bottleneck.
“The decline in younger buyers is being felt across the market, particularly in the entry-level and first-time buyer segments, which have traditionally provided a steady pipeline of transactions,” he says. “For property practitioners, this translates into fewer qualified buyers, longer sales cycles, and increased competition for a smaller pool of active purchasers.”
When entry-level homes stay on the market longer, the financial strain on real estate agencies grows. Andre Kleynhans, Principal of EZI Properties, points out that the current economic climate forces a slowdown that directly impacts income.
“Younger buyers are delaying purchases due to affordability pressures, high interest rates, rising living costs, and stricter lending criteria,” he shares. “This has led to reduced sales volumes for property practitioners, and listed properties remain in the market for a much longer time before being sold, which places a major strain on our cash flow.”
However, while sales volumes are down, the rental market is growing. Philip Myburgh, Principal and CEO of Plett Realty and Knysna Realty, highlights that because young adults are staying in rentals longer, property investors are seeing better returns.
“If younger buyers are not purchasing homes, they remain in the rental market for longer, which increases demand for rental stock and places upward pressure on rental prices,” he says.
“When fewer people enter the market at the bottom, transaction volumes slow across multiple price brackets. In many areas, especially in larger metropolitan markets, entry-level properties are no longer experiencing the capital growth they once did. But investors are benefiting from stronger rental demand and improved yields.”
On a more encouraging note, the Prop Data poll also found that 51% of property practitioners already have a strategy in place to attract younger buyers. Turning the interest in the market into actual sales means changing how real estate businesses market, educate, and package their properties.