A growing number of young South Africans are choosing to purchase property entirely on their own, marking a substantial shift in how the country’s newest wave of homeowners approaches both property ownership and adulthood itself. Rather than waiting until after marriage, children or other conventional milestones, young buyers, defined here as those under 35, are placing homeownership much earlier on their list of priorities, often treating it as one of the first major financial decisions they make while still building their careers and establishing their independence.
Key Takeaways
- Single buyers now dominate the youth market: More young South Africans than ever are purchasing homes alone, with single applications rising across every age group between 2016 and 2026, even as affordability pressures and property prices climb.
- Homeownership is happening earlier, before family life: The overwhelming majority of buyers under 25 have no dependants, showing that owning a home has become an early-career goal rather than a milestone tied to marriage or parenthood.
- Lenders and developers are adapting to the shift: Zero-deposit and cost-inclusive loans have surged in popularity among younger applicants, while developers are building more compact, urban, sectional-title properties to meet this generation’s needs.
Single Homebuyers Now Dominate The Youth Market
Among the clearest patterns to emerge from ooba Home Loans data is the increasing dominance of single-applicant home loan applications. Notwithstanding affordability pressures, climbing property prices and a wider climate of economic uncertainty, young South Africans are more and more often buying property without the involvement of a partner.
By 2026, 76.9% of all home loan applications submitted by buyers between the ages of 18 and 24 came from single applicants, a marked rise from 68.4% ten years earlier. Within the 25 to 34 age bracket, the proportion climbed from 56.6% in 2016 to 65.5% in 2026. Perhaps the most unexpected finding of all is that the steepest increase took place among buyers older than 34, where single applications rose from 57.1% to 67.3% across the same ten-year period.
Although affordability pressures, rising property prices and general economic uncertainty might reasonably have been expected to push more buyers toward co-buying arrangements, the data suggests the reverse has occurred. Single applicants continue to lead the market across provinces, demographic groups and every age category examined.
About Arcadia Finance
Take the stress out of borrowing with Arcadia Finance. Apply with no application fees and access 19 reputable lenders that meet South Africa’s National Credit Regulator standards. Experience a streamlined process and loan options designed to suit your financial goals.
Buying Before Starting A Family
The figures also show that a considerable number of buyers are entering the property market before they begin raising families. Among applicants aged 18 to 24, a striking 92.5% of applications in 2026 were submitted by individuals with no dependants. For those in the 25 to 34 age group, the share climbed from 63.6% to 72.2% over the past decade, while among buyers older than 34, the proportion without dependants rose from 49.0% to 57.7%.
When considered together, these figures indicate that homeownership is progressively becoming an early-life financial ambition rather than a milestone that traditionally follows marriage and the arrival of children.
- 92.5% of 18 to 24 year old applicants in 2026 had no dependants
- The share of 25 to 34 year olds without dependants rose from 63.6% to 72.2%
- Among over-34 buyers, the proportion without dependants increased from 49.0% to 57.7%
Single Applicant Percentages By Age Group (2016 vs 2026)
| Age Group | 2016 | 2026 | Change |
|---|---|---|---|
| 18 to 24 years | 68.4% | 76.9% | +8.5 percentage points |
| 25 to 34 years | 56.6% | 65.5% | +8.9 percentage points |
| Over 34 years | 57.1% | 67.3% | +10.2 percentage points |
Banks Adapt To A New Generation Of Homebuyers
Even though they are entering the property market on the strength of a single income, many young buyers are still managing to find their way onto the property ladder. According to Lomberg, this is partly a consequence of lenders adjusting to the realities of a generation that frequently possesses strong earning potential but comparatively limited savings.
Zero-deposit home loans continue to be widely accessible to younger buyers who present strong credit profiles.
A zero-deposit home loan, sometimes called a 100% loan, allows a qualifying buyer to borrow the full purchase price of a property without putting down any upfront deposit, a product that has become especially important as saving for a lump sum grows harder amid rising living costs. This is explored in more depth in our guide on the deposit needed for a home loan.
Data compiled by ooba Home Loans highlights a notable rise in the use of both zero-deposit loans and cost-inclusive loans over the past ten years, with Lomberg further noting that applications for cost-inclusive loans, in which the amount borrowed exceeds 100% of the property’s value in order to cover transaction costs, have surged among younger buyers in particular.
Among buyers aged 18 to 24, the proportion of cost-inclusive loan applications increased from 0.9% in 2016 to 16.1% in 2026, while among applicants aged 25 to 34 it rose from 0.4% to 14.6%. By way of comparison, uptake among applicants older than 34 increased from 0.2% to 7.0% over the same period.
At the same time, Lomberg reports that demand for zero-deposit loans has also grown stronger. While applications from buyers aged 18 to 24 stayed relatively stable at around 53%, the share of applications from 25 to 34 year olds seeking zero-deposit finance rose from 51.2% to 59.7%. By comparison, the sharpest increase of all was recorded among applicants older than 34, climbing from 38.7% in 2016 to 56.1% in 2026.
This pattern reflects the mounting affordability challenges confronting first-time buyers, many of whom are able to manage monthly repayments comfortably but find it far more difficult to save for a deposit, transfer duties and legal fees.
Beyond the deposit itself, first-time buyers should budget for additional costs such as bond registration fees, property transfer duty, conveyancing attorney fees and initial homeowners insurance, all of which can add several percentage points to the total cost of a purchase, a point we unpack further in our breakdown of the hidden costs of buying a house in SA.
Lomberg explains that these products have become especially significant for first-time buyers, adding that this is the reason high loan-to-value ratios continue to be so common within this particular segment of the market.
Zero-Deposit And Cost-Inclusive Loans On The Rise
| Loan Type | Age Group | 2016 | 2026 |
|---|---|---|---|
| Cost-inclusive loans | 18 to 24 years | 0.9% | 16.1% |
| Cost-inclusive loans | 25 to 34 years | 0.4% | 14.6% |
| Cost-inclusive loans | Over 34 years | 0.2% | 7.0% |
| Zero-deposit loans | 18 to 24 years | ~53% | ~53% |
| Zero-deposit loans | 25 to 34 years | 51.2% | 59.7% |
| Zero-deposit loans | Over 34 years | 38.7% | 56.1% |
A loan-to-value (LTV) ratio compares the size of a home loan to the assessed value of the property being purchased. A ratio above 100%, as seen with cost-inclusive loans, means the bank is lending more than the property is technically worth, which is why lenders reserve these products for applicants with particularly strong credit records.
Urban Living Shapes Property Choices
The growing prevalence of single buyers is also having an influence on the types of properties young South Africans are choosing to purchase.
Sectional-title properties have progressively become the standard entry point into the market for many young buyers. Apartments, townhouses and units within security estates typically provide a more affordable route into homeownership, while also situating buyers closer to employment opportunities and established infrastructure.
Sectional-title ownership means a buyer owns a specific unit outright while sharing ownership of communal areas, such as gardens, gyms or security infrastructure, with other residents, and comes with monthly levies that should be factored into any affordability calculation. Disputes and scheme governance in this space are overseen by the Community Schemes Ombud Service, the statutory body responsible for regulating sectional-title and other community housing schemes.
Applications for sectional-title properties increased across every age group examined between 2016 and 2026. Among buyers aged 18 to 24, sectional-title purchases rose from 50.5% to 52.2% of applications. For buyers aged 25 to 34, the figure increased from 39.6% to 41.5%, while among buyers older than 34 it rose from 28.4% to 30.9%.
Although these increases may appear relatively modest on paper, they reflect wider demographic and lifestyle shifts taking place across the country. As more buyers purchase homes independently and postpone having children, demand for smaller, more affordable and centrally located housing continues to climb.
This trend is particularly noticeable in high-cost regions such as the Western Cape, where average purchase prices among buyers aged 25 to 34 frequently exceed R1.5 million and can surpass R2 million in certain areas.
- Sectional-title purchases among 18 to 24 year olds rose from 50.5% to 52.2%
- Among 25 to 34 year olds, the figure rose from 39.6% to 41.5%
- Among over-34 buyers, sectional-title purchases rose from 28.4% to 30.9%
- Average purchase prices for 25 to 34 year olds in the Western Cape can exceed R2 million
Sectional-Title Properties As The Entry Point
South Africa’s youth market is described as overwhelmingly urban in character. Urban jobs, urban lifestyles and the composition of urban housing stock all tend to favour smaller, more affordable homes over larger freehold properties.
Developers have responded to this shift by increasing the supply of compact apartments, mixed-use developments and secure residential precincts specifically designed to appeal to young professionals and first-time buyers.
Homeownership Remains The Priority
Despite ongoing conversations around rentvesting, the building of property portfolios and buy-to-let investing, the data indicates that most young South Africans remain primarily focused on buying homes to live in rather than acquiring investment properties.
In 2026, investment purchases accounted for just 8.6% of applications among buyers aged 18 to 24 and 5.9% among buyers aged 25 to 34. Although both figures have risen since 2016, they remain comparatively small when set against owner-occupier purchases, suggesting that the mainstream youth market continues to prioritise stability, independence and long-term wealth creation over property speculation.
The Next Generation Is Rewriting The Rules
According to Lomberg, what is being witnessed is not a decline in the desire to own a home, but rather a generation adapting to a markedly different set of circumstances than those faced by their parents.
Taken as a whole, these trends point toward a housing market that is being reshaped from the ground up by a new generation of buyers. Today’s young buyers are more likely to purchase property on their own, more likely to buy within urban centres and more likely to prioritise a primary residence over an investment property. They are making different trade-offs to those made by previous generations, yet the underlying aspiration towards ownership has remained unchanged.
The future of South Africa’s property market will, to a significant degree, be shaped by this generation of buyers. Understanding how they live, work and go about purchasing property is becoming an increasingly important consideration for everyone from developers and lenders through to estate agents and policymakers.
Conclusion
The data paints a picture of a generation redefining what homeownership looks like in South Africa, not by abandoning the goal, but by pursuing it on different terms. Young buyers are more likely to purchase alone, more likely to settle in urban centres and more likely to prioritise a place to live over an investment opportunity, all while lenders and developers adjust to meet them where they are. As this cohort continues to shape the market, understanding their choices will only grow more important for everyone with a stake in South African property, from banks and developers to estate agents and policymakers.
Fast, uncomplicated, and trustworthy loan comparisons
At Arcadia Finance, you can compare loan offers from multiple lenders with no obligation and free of charge. Get a clear overview of your options and choose the best deal for you.
Fill out our form today to easily compare interest rates from 19 banks and find the right loan for you.
