The South African housing market is undergoing a transformation driven by the preferences of millennials (born 1980-1996) and Gen Z. These younger generations, particularly affected by the global financial crisis and COVID-19 pandemic, are entering the property market in significant numbers and influencing changes across the sector. According to Richard Gray, CEO of Harcourts South Africa, millennials prioritise flexibility, technology, and sustainable living, preferring urban properties with access to amenities and public transport. This trend is increasing demand for apartments and townhouses in well-connected neighbourhoods.

Millennials’ tech-savviness is revolutionising real estate transactions, with digital tools and online platforms becoming essential to meet their expectations for a seamless experience. Sustainability is another critical factor, with eco-friendly features like solar panels, energy-efficient appliances, and green building materials being highly valued. Affordability remains a significant concern, driven by student loans and a competitive job market. Millennials seek value for money, often compromising on property size in favour of location and quality, and exploring creative financing options like co-ownership.

Echoing these trends, Pearl Scheltema, CEO of Fitzanne Estate, notes that both millennials and Gen Z buyers are true digital natives influenced by technology and sustainability. However, affordability challenges persist due to high property prices and stringent lending criteria. Advanced smart home technologies and integrated security systems are particularly appealing to these buyers, who value the ability to control various home aspects remotely. Safety and security are paramount, with younger buyers favouring properties within secure complexes and new developments featuring advanced security measures. This shift towards multifunctional homes aligns with contemporary lifestyles and values, reflecting the priorities of younger generations in the South African housing market.