Generation Z, with a projected disposable income of US$33 trillion over the next decade, might seem destined for property ownership. However, in South Africa, where 27.5 million Gen Zers reside, youth unemployment stands at a staggering 45.5%, casting doubt on their ability to afford homes.
Research by Lightstone shows a decline in Gen Z property acquisitions, attributed to high interest rates and unemployment. Despite this, many Gen Zers are looking at global markets, with South Africa remaining an attractive option.
Property inheritance could boost sales, as South Africa's declining birth rate leads to smaller families. Yet, many Gen Zers prefer living with parents or renting. Their eligibility for home loans is also limited, given their early career stages and stagnant wages.
Gen Zers are cautious about long-term commitments, preferring low-maintenance properties like those in Sectional Title estates. Their spending priorities lean towards luxury and travel, postponing property investments until they start families.
As this generation navigates economic challenges and shifting priorities, their approach to home ownership will continue to evolve, reshaping the real estate market.
