Home Sales Surge: Buyers Aged 36-49 Lead, 50-64 Close Behind

According to Lightstone statistics, the age cohort of home buyers between 36 and 49 years has seen significant growth since 2018, making it the largest group of purchasers. Buyers aged 50-64 are also active in the market, contributing to a dynamic residential sales landscape.

• Dominant Age Group: Buyers aged 36-49 have increased their market share from 37% in 2018 to 40% in 2024, reflecting strong purchasing power.
• First-Time Buyer Demand: Mortgage applications from first-time buyers rose to 51% in September 2024, indicating renewed interest in home ownership despite economic challenges.
• Investment Shift: Buyers aged 50-64 represent a growing market segment, increasing from 21% in 2018 to 24% in 2024, often seeking retirement properties and investments.

Home Buyers: Trends Among Different Age Groups in the Market

Perhaps not surprisingly, and according to Lightstone statistics, the age cohort of home buyers reflecting growth in numbers since 2018 are those between 36 and 49 years – the largest group of purchasers, while those from 50-64 are also very active buyers and investors.

Dr. Andrew Golding, CEO of Pam Golding Property Group, notes that many in the 36-49 age group have paid off their mortgages and accumulated wealth through residential investments. In contrast, younger buyers aged 18-35 face economic challenges and limited financial resources, particularly first-time buyers trying to enter the property market.

Despite these challenges, demand for home ownership among young first-time buyers is rising. According to ooba Home Loans, mortgage applications from this group increased to 51% in September 2024, the highest level since February 2023. This is the third consecutive increase in first-time buyer demand, bolstered by supportive banking conditions and an improved inflation outlook, which may lead to further interest rate relief in the coming months.

Dr. Golding highlights that the percentage of home purchases by buyers aged 36-49 has risen from 37% in 2018 to 40% in the first half of 2024. The average age of all buyers in South Africa is now 39, two years older than a decade ago. Notably, the average age of first-time buyers is currently 35, indicating that the majority do not fall into this age group. The 36-49 demographic includes young professionals and families looking to upgrade, relocate, or invest.

Conversely, the share of sales by buyers aged 26-35 has decreased, dropping from 31% in 2018 to 26% in 2024. This decline is attributed to rising interest rates and a decrease in affordability, causing many first-time buyers to postpone their purchases.

Home Buyers: The Rising Influence of Older Demographics in the Market

Dr. Golding also points out that the 50-64 age group is becoming increasingly significant in the residential market, rising from 21% in 2018 to 24% in 2024. Many in this age bracket are semigrating to coastal areas like the Western Cape, often as affluent retirees seeking quality living arrangements.

The demand for investment properties among this demographic has also increased. Retirees and individuals aged 65 and older have seen a slight uptick in their market share, from 6% to 8%. This growth is likely due to downsizing, relocating closer to family, or seeking retirement communities that offer lifestyle amenities and security.

Overall, Dr. Golding attributes the rising average age of homebuyers to economic pressures and interest rates, which have delayed first-time purchases. However, there is a notable increase in investment demand, particularly in the Western Cape, where 31.1% of mortgage applications are for investment properties. As people remain economically active longer, there is a trend toward purchasing lock-up-and-go homes in desirable locations as a precursor to retirement living.

In summary, the residential property market is evolving, with a notable shift toward older buyers and an increasing demand for investment properties, while younger buyers are beginning to re-enter the market amid improving conditions.