Locked Out: Why Young South Africans Are Struggling To Buy Homes

For many young South Africans, owning a home is no longer a milestone you work towards. It is starting to feel like a distant dream.

New data is painting a worrying picture. Fewer young people are entering the property market, and those who want to are finding the door firmly shut. Behind it all is a mix of rising costs, stagnant wages, and a broader economic squeeze that is quietly reshaping the future of housing in the country.

The Shrinking Presence Of Young Buyers

There has been a clear shift over the past decade. According to Lightstone Property, the number of buyers aged between 18 and 35 has dropped sharply.

Back in 2014, young buyers made up around 40% of the market. Fast forward to 2025, and that figure has fallen to just 30%. In real terms, that is a drop from about 72,000 buyers to only 47,000.

At the same time, property prices have not slowed down. In fact, they have climbed even faster, especially in higher price brackets. This growing gap between earnings and property prices is making it harder for young people to even get started.

Hayley Ivins-Downes from Lightstone describes the situation as more than just a rough patch. It is a deep structural issue that is changing how the market works.

The Real Cost Of Trying To Buy A Home

Buying a home today is not just about saving for a deposit. It is about surviving a broader cost-of-living crisis.

Over the past few years, South Africans have been hit by wave after wave of price increases. From electricity to food, the basics are taking up a bigger slice of household income.

Competition Commission economist Raksha Darji points out that lower-income households are spending nearly 67% of their income on food and housing-related costs. That leaves very little room to save, let alone plan for a home purchase.

Administered prices have also surged. Over a five to six year period, some costs have jumped by as much as 85%. These increases have outpaced inflation and are placing serious pressure on everyday budgets.

For young earners, this creates impossible choices. Do you prioritise rent, groceries, or transport? Saving for a home deposit often falls to the bottom of the list.

Why The System Is Working Against Young People

The challenges go beyond rising prices. There are several structural barriers that are making it harder for young buyers to enter the market.

House prices are increasing faster than wages. Deposits are larger. Student debt is higher. Banks are also more cautious when approving home loans, partly due to tighter rules introduced after the global financial crisis.

There is also a shift in mindset. Some young South Africans are hesitant to commit to long-term property investments due to uncertainty about the economy and the country’s future.

The result is a growing divide. Older generations, who bought property years ago, are holding onto housing wealth. Younger people, meanwhile, are renting for longer and often spending a bigger portion of their income on accommodation.

The Bigger Picture For South Africa

This is not just a personal finance issue. It is becoming a national economic concern.

Globally, institutions like the OECD and IMF have already flagged housing affordability as a structural problem. South Africa is now facing the same reality, with local conditions making it even tougher.

There is also a ripple effect. When young people cannot buy homes, the entire property ladder is disrupted. First-time buyers are essential for keeping the market moving. Without them, transaction volumes decline and the system starts to rely more on inherited wealth or family support.

Ivins-Downes warns that this could weaken long-term demand. If a generation never enters the market, it changes the future of property ownership entirely.

What Comes Next For The Property Market

Right now, there is no quick fix.

The combination of global pressures and local economic challenges means relief is unlikely in the short term. Structural inefficiencies, like pricing patterns where costs rise quickly but fall slowly, are keeping expenses high.

Without meaningful reform, the outlook is clear. Homeownership rates could continue to decline. Renting could become the norm for more South Africans. And inequality, already a major issue, could widen even further.

For young people trying to build a future, the stakes are high. The question is no longer just when they will buy their first home. It is whether they will be able to at all.