Generation Y in the market

CERTAIN areas throughout the country are seeing high numbers of buyers under the age of 30 entering the market.

According to Lightstone, a property statistics and information provider, there are areas around the country – such as Lonehill in Gauteng and Woodstock in the Western Cape for example – where more than half of the recent buyers have been between the ages of 18 and 35 years old.

Remax CEO Adrian Goslett says: “While obtaining finance is still challenging for many want-to-be homeowners, more and more of the younger generation consumers are placing an exceptionally high value on property ownership and are making the necessary changes in their lifestyle to achieve their homeownership goals.”

Goslett says that with interest rates still favourable and property prices on the rise, many younger buyers are realising the importance of getting into the property market sooner rather than later.

Property prices are increasing throughout the country and the longer buyers wait, the harder it will be to get into the market.

While Generation X buyers account for approximately 18.74 million South African consumers, Generation Y buyers make up about 28.4 million consumers who are now of an age to purchase a property.

“The fact that this larger generation of buyers is now ready to buy property is excellent news for the economy, specifically the residential market.”

He adds that Generation Y, or millennial buyers as they are also known, are tech-savvy consumers who are able to access a vast amount of information at the touch of a button. As a result, this generation is aware of the fact that waiting any longer to buy a home would only affect them negatively as the market has transitioned to favour sellers.