Estate agents say they have observed a growing trend of people aged between 25 and 40 choosing to rent rather than buy property because of economic pressures. On the other hand, those who do purchase homes are increasingly doing so as an investment.
The trend comes as Absa’s latest Homeowner Sentiment Index shows that many South Africans continue to view property as a secure investment despite affordability challenges.
Agents also say renters are prioritising accessibility and convenience, whether they choose to live in gated estates or free-standing homes.
RE/MAX Ebenezer estate agent Mohau Motaung in Soweto said young adults are increasingly leaning towards renting because of affordability constraints.
“People can afford to pay rent, but they do not necessarily qualify for or are able to afford a bond. The bank’s criteria are not the same as those of a landlord or rental agent," he said.
“People also want to live in areas with easy accessibility and connectivity. Often, the areas where they qualify to buy may not necessarily be the areas where they prefer to live.
“When we talk about accessibility and connectivity, that attracts a certain type of tenant.”
Motaung added that tenants increasingly want to live close to schools, shopping centres, healthcare facilities and places of employment.
“People want to rent closer to work because they want to save on transport costs. If they can work closer to home, they travel fewer kilometres, which is better. You must also consider vehicle maintenance costs if they own a car.
“All those factors create a bottleneck. People tend to move into certain areas because they do not want to be spread out across different locations,” he said.
Another increasing trend, Motaung said, was people investing in property to generate income.
“The whole of Protea is a rental market. Most of the people have finished paying their bonds. Instead of selling, they hold onto the properties to generate income and become landlords.
“People also buy properties purely for investment. They never intend to live in those properties. They buy them as a source of income, even at the age of 30 or 35,” he said.
“It is a new type of environment, and you may have one tenant after another until eventually the house is halfway paid, and only then does the owner consider moving in.”
Sinazo Mcoyana, 33, lives in Sandton and said she initially wanted a place to rent.
“I did not think I was ready to buy property until recently, when I was thinking about how much goes towards my rent.
“I needed a studio apartment or a 1-bedroom, and my biggest thing was a place close to work because I didn’t want a long commute to and from work.
“So Sandton/Sunninghill were the areas I was eyeing,” she said.
Mcoyana said it took her a whole month of viewing properties until she made a decision.
“The biggest challenge was firstly how some properties were charging an arm and a leg for small living spaces and extra utilities that I felt should have been inclusive in the rent,” she said.
“For a studio/1-bedroom apartment, I didn’t expect to pay as much as I do, but I also realise that’s for the specific area I chose. So, as far as affordability is concerned, you pay for convenience,” she said.
According to the Absa Home Index, positive sentiment over the property market reached an all-time high in the first quarter of 2026.
However, the Index also added that buying instead of renting is still preferred by the majority of South Africans.
According to the Index, buyers aged 25 to 34 hold the highest property market confidence at 90%, accounting for 27% of all purchases over the past year.
Confidence drops slightly to 88% for those aged 35 to 54, while buyers over 55 express the least optimism at 84%.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.