By: Natasha Archary
South African youth are buying fewer houses and cars compared to 10-years ago, according to data from Lightstone Property.
Hayley Ivins-Downes, Head of Digital at Lightstone Property, shares these insights with Gugulethu Mfuphi on Kaya Biz, noting a rapid decline in asset investment by youth.
In 2012, the number of under 35s who owned new cars and made property purchases, accounted for 39% and 45% respectively.
Ten years later, in 2022, these numbers dropped to 31% and 37%, with youth purchases for property coming in much later.
“The trend that’s clear is that fewer people under the age of 35 are spending money on property and are opting to rather rent until they reach an age that they feel ready to settle down.
It’s been quite an interesting study, going back and trying to understand the trends from 2012 until now. We’ve obviously gone through a number of changes over the recent years, especially with the Covid-19 period, and the hybrid work model, which is a factor, because it gives people the opportunity to work from anywhere really.
Which means, there’s no real need to settle down and be tied to property, when you can rent wherever you want to be, and have the flexibility to move around.”
Hayley says apart from showing no interest in buying property, South African youth, aren’t particularly invested in buying a new car either.
Lightstone’s Signio platform, which automates the vehicle finance and insurance process, shows youth accounted for 31% of new car sales in 2022 compared to 39% in 2012.
Hayley says there’s a number of reasons for youth buying fewer houses and cars, including the uncertainty of the market, the volatility of property lending rates, other opportunities that may be peaking the interest of the younger generation such as travelling.
Listen to the conversation on Kaya Biz:
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