Buyers from 36-49 years still dominate the residential sales market
According to Lightstone statistics, the largest cohort of home buyers showing consistent growth since 2018 are those between 36 and 49 years of age. This group continues to dominate the residential sales market, while buyers aged 50-64 also remain active in both purchasing and investment.
Dr Andrew Golding, chief executive of the Pam Golding Property Group, says: “This is logical, as many in this age group have paid off their mortgages or accumulated wealth through property investments. On the other hand, younger buyers, particularly those aged 18-35, face more significant economic challenges and fewer financial resources, especially first-time buyers looking to enter the market.”
First-time buyers on the rise
“Despite these challenges, the appetite for home ownership among young first-time buyers is increasing. According to ooba Home Loans, first-time buyer demand has strengthened, rising above 50% to 51% in September 2024, the first time since February 2023,” Dr Golding noted. This is the third consecutive increase in demand from first-time buyers, with improved inflation outlook and supportive banks contributing to the prospect of further interest rate relief in the next 12-15 months.
Trends in age demographics
“The percentage of home purchases by buyers aged 36-49 years has increased from 37% in 2018 to 40% in the first half of 2024. The average age of all buyers in South Africa is now 39, up by two years from a decade ago. First-time buyers typically fall into the younger category, with the average age being 35 years,” Dr Golding explained.
“Meanwhile, the percentage of buyers aged 26-35 years has declined from 31% in 2018 to 26% in the first half of 2024, likely due to interest rate hikes following the pandemic, which affected affordability and delayed first-time buyers from entering the market.”
Older buyers and investment growth
According to Lightstone statistics, buyers between the ages of 50-64 years have also seen an increase in their share of the market, rising from 21% in 2018 to 24% in the first half of 2024. Many of these buyers are semigrating to the Western Cape and other coastal regions, often seeking retirement or investment properties.
“Investment demand has grown significantly, particularly in the Western Cape, where 31.1% of home loan applications received by ooba Home Loans in 2024 were for investment properties, mostly from older, more affluent buyers,” said Dr Golding.
Retirees and lifestyle changes
Buyers aged 65 years and older have also shown a slight increase in market share, rising from 6% in 2018 to 8% in 2024. These buyers are often looking to downsize, relocate closer to family, or purchase in retirement developments that offer desirable lifestyle and security features, such as Val de Vie estate, which includes options for assisted living.
“This age group tends to favour new-build developments with high-quality amenities and the convenience of secure, lock-up-and-go living,” added Dr Golding. “They are often still active or working from home and prefer homes that suit an active lifestyle.”
Factors behind age demographic trends
Dr Golding concluded: “There are several factors behind the general age increase among home buyers. Affordability has deteriorated in tough economic conditions with high interest rates, causing some buyers to delay their first purchase. Many are waiting longer due to life stage or lifestyle decisions, but this trend may reverse depending on interest rate relief in the near future.”
