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Property trends show resilience, adaptability, and a growing appetite for smart, long-term financial decisions
For many young South Africans, owning a home may feel harder to reach than it did for previous generations. Rising property prices, higher living costs, and economic pressure have changed how young people enter the property market. But FNB says that young buyers have not given up on climbing the property ladder. Instead, they are finding different and more practical ways to get there.
FNB’s data shows that over the past decade, the share of property buyers under the age of 35 has declined from 38% to 31%. However, young customers remain firmly represented in the first-time buyer market, accounting for nearly half of all first-time home purchases. This suggests that while fewer young people are entering the property market, those who do are approaching the decision with greater intention, adaptability, and long-term thinking.
Vanashree Naidoo, FNB Home and Structured Lending Product Head, says many young professionals and graduates still see homeownership as an important part of building financial stability, but need the right support to understand affordability, credit usage, and long-term financial planning.
“Buying a home is one of the biggest financial decisions a young person can make. The challenge is not only whether they can afford the monthly repayment, but whether they understand how to use credit responsibly to build long-term value,” says Naidoo. Not all debt is negative, she adds. “The important distinction is between debt that creates pressure and debt that can support progress. A home loan, when structured correctly and within a customer’s affordability, is a form of good debt. It allows one to invest in an asset that can grow in value over time, while also helping to build a foundation for long-term financial wellbeing.”
As property prices have increased, young buyers have adjusted their expectations. In 2015, more than a third of young buyers purchased homes valued below R400,000. By 2025, that figure had declined to just 14%, reflecting a significant shift in entry-level property availability and affordability. Rather than stepping back from the market entirely, young buyers are adapting by targeting higher price brackets and planning their homeownership journeys more deliberately.
The proportion of young and first-time buyers using mortgage finance has increased significantly, with around 76% relying on home loans to secure a property. This trend points to the importance of financial solutions that help bridge the gap between income, property prices, and aspirations. The Bank’s data also reveals that young and first-time buyers make greater use of higher loan-to-value financing, reflecting the growing role of tailored credit solutions in enabling market entry. This suggests that access to responsibly structured finance is a critical part of making home ownership possible.
According to Naidoo, today’s young buyers are approaching homeownership differently. Many are starting with sectional title properties as a more affordable entry point, purchasing independently earlier in life, and viewing their first property as a stepping stone rather than a final destination.
“This generation is adaptable, informed and focused on long-term value. Young buyers are not necessarily following the same route as previous generations, but they are still finding practical ways to enter the market,” she says.
FNB’s data supports this shift in behaviour. The weighted average tenure of home loans held by homeowners under the age of 35 is just under seven years. This relatively short holding period points to a growing level of financial awareness among younger buyers, who are increasingly prioritising early loan settlement and using property ownership as a strategic stepping stone.
We see that many young homeowners are choosing to sell and upgrade within this timeframe, reflecting a more deliberate and proactive approach to building long-term property wealth. Naidoo adds that financial institutions have an important role to play in helping first-time buyers understand the process, assess affordability realistically, and avoid taking on commitments that may place them under pressure.
“Young graduates and professionals are entering the workforce with ambition but often face constraints when trying to access the property market. Tailored solutions that take their early-career realities into account can make a meaningful difference in helping them take that first step,” she adds.
In March 2026, FNB introduced a home loan specifically designed to support young graduates and professionals in taking their steps onto the property ladder. The solution offers qualifying customers under the age of 35 the option to pay interest only at a more competitive fixed rate for the first two years while still retaining the flexibility to make full repayments if they choose. This flexible structure can help reduce the monthly repayments during the early stages of their homeownership journey, creating a more manageable entry point.
As part of the additional benefits, FNB also offers qualifying first-time buyers up to 110% loan-to-value and a 50% discount on attorney bond registration fees, further easing the upfront cost of purchasing a home. While owning a home may require more intentional planning than it did a decade ago, it remains one of the most effective ways to build wealth. Property ownership offers long-term financial security, potential for value growth over the long-term, and a tangible asset that can support future financial goals.
“This Youth Month is a reminder that the financial decisions made today can have a lasting impact. For many, owning a home may not look like it did for previous generations, but it is still possible. With the right information, realistic expectations, and access to the right financial tools, the path to homeownership remains open,” concludes Naidoo.
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