Where have all the (younger) homeowners gone ?
Category Market News
Some 128 749 homeowners left the market in 2021, selling properties valued at R200 billion at an average of R1.8 million per property - and it's noticeable that the pendulum has swung towards younger homeowners leaving the market.
The profile of sellers changed significantly from 2010 to 2021, swinging from older to younger, and there are many potential reasons for this. Tougher economic conditions - exacerbated by Covid-19 - were taking their toll and forcing younger people out of their homes. Emigration could be a factor too, while some sellers may be waiting for prices to fall to buy at bargain prices. Then again, younger people are typically adopting a "live light" philosophy, and this could also account for some of the shift.
While the impact of Covid-19 has obviously played a role in the market, attention is now shifting to the Russian invasion of Ukraine and the market is waiting to see its impact on the SA economy and how it might affect residential house sales.
In 2010 those leaving the market (see graph below) were predominantly in the older age groups, between 36 and 49 years of age (21%), 50-64 (35%) and the 65+ age group was the largest category at 44%. In 2021, this was significantly different, with 10% of sellers being in the 18-35 age group, up from 0% in 2010. The 36-49 group went from 21% to 28%, while the 50-64 age group dropped from 35% to 29% and the 65+ age group fell from 44% to 34%.
In summary, those under 50 now account for 38% of sellers as opposed to 21% in 2010.
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Author: Lightstone
