Is your house a stokvel? How Gen Z and Millennials remixed home ownership
There has been much said about what Millennials and Gen Z do with their money and time.
Their spending habits have left many keeping track of what trends they influence and how they shift industries. While clothing and travel have been among the trends to watch, property ownership has entered the fray.
National head of sales at BetterBond, Brad Bendall, said the two generations might enter the property market later, but younger buyers continue to 'drive activity in the home loan market'.
He shared data that shows buyers between the ages of 20 and 35 accounted for almost a third of all residential property transactions in 2024, making it the second largest group after buyers in the 36 to 50 cohort.
'High prime lending rates and financial pressures have had an impact on younger buyers' market activity,' he said, adding a recent FNB report saw first-time buyers, of which 69% are classified as 'youth', accounted for almost 68% of all bond approvals in April this year.
Here are five facts that show Millennials and Gen Z are shaking up the property industry.
TECH SAVVY
While the two generations have grown up in a tech-oriented world, Gen Z has led the charge in investing in homes that incorporate smart automation and energy efficiency. Bendall said Gen Z is more likely to conduct the process of buying a new home exclusively online.
TEAMWORK MAKES THE NEW HOME WORK
Gen Z buyers have driven trends that appreciate micro-apartments that allow for lock-and-go convenience. They've also been drawn to co-living arrangements where several people share a housing unit and communal facilities. Bendall said financial security is important for the group, as these buyers are likely to consider a joint bond with family members or friends to make home ownership possible.
POWER OF INDEPENDENCE
Between the ages of 29 and 44, Millennials are said to take the opposite route by investing into a property solo. Bendall said Millennials no longer consider traditional notions of being married first and then getting into home ownership. Instead, they 'assert their financial independence as single buyers'. Many of the buyers are black women under the age of 40, according to BetterBond's application data.
STEPPING STONES
While many Millennials are leaning towards buying their own property, Bendall said some work with friends, family or their partners to invest in a property they can use as a stepping stone towards their next home.
'This generation will also consider reinvesting, where they own a home in a more affordable area while renting in the area in which they want to live,' said Bendall.
SIZE MATTERS
With Millennials taking a strong interest in health and wellness, their lifestyles have become a huge factor when choosing a home. This does not prioritise location but rather stresses an importance for the size of the space. This is seen in Cape Town, where Millennials comprise a large part of the residential population.
'They compromise on the property's size to benefit from the vibrancy of city living and proximity to work,' said Bendall.
This includes sectional title units in lifestyle estates and new developments.
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