Millennials Drive South Africa's Resurgent Housing Market

Strategic Insights -

Millennials are emerging as the driving force behind South Africa's resurgent housing market, fuelling record-high purchases and renewed buyer confidence. According to BetterBond's data, home-loan applications have climbed to their strongest levels since 2022, with demand surging particularly in the affordable and mid-market segments. This upward trend among younger and mid-career buyers reflects a growing demand for larger, more family-oriented homes, says Bradd Bendall, BetterBond's national head of Sales.

Key Takeaways:

  • Millennials accounted for the strongest year-on-year price growth just above inflation, with their average spend on a home purchase moving decisively above the R1.4m mark, increasing by 3.9% to R1.54m.
  • Buyers in their forties broke through the R1.6m mark for the first time, spending on average R1.75m on a home.
  • In contrast, buyers in the 51–60 age cohort were the only group to experience negative real house-price growth.
  • The share of home loans granted in the past year between R500,000 and R1.5m is more than half (54%), with the most active segment being for bonds of between R500,000 and R1m.
  • Affordability remains a challenge at the lower end of the market, with the share of the lowest price bracket, below R500,000, dropped by 5.7%.
  • The average deposit required of first-time buyers increased by 5.8% to R188,000 in July, while for all buyers, the average deposit jumped 14% to R311,000.
  • The value of residential buildings completed from January to May 2025 reached R18.6bn, with notable differences across provinces, with Gauteng and Western Cape leading the way in terms of completions values.
  • The upward trends in bond-application volumes and house-price growth point to a property market that is steadily gaining momentum, with home-loan activity at levels last seen post-pandemic.

Statistics:

  • Home-loan applications climbed to their strongest levels since 2022.
  • The average spend on a home purchase by millennials moved decisively above the R1.4m mark, increasing by 3.9% to R1.54m.
  • Buyers in their forties spent on average R1.75m on a home for the first time.
  • The share of home loans granted in the past year between R500,000 and R1.5m is more than half (54%).
  • The value of residential buildings completed from January to May 2025 reached R18.6bn.
  • The average deposit required of first-time buyers increased by 5.8% to R188,000 in July.
  • For all buyers, the average deposit jumped 14% to R311,000.

Sources:

  • Supplied
  • BetterBond's August Property Brief
  • BetterBond's national head of Sales, Bradd Bendall