Drawn by the allure of opportunity and connectivity, young people across Africa — and especially South Africa — are flocking to cities. But urban life is not delivering on its promise. Instead, youth find their limited earnings consumed by high rentals for small, shared spaces, with homeownership feeling increasingly out of reach.
The rising urban housing crisis
An urban housing crisis has been growing steadily across Africa over the past decade. Youth are not only unable to afford property in urban areas — many can’t even afford to rent.
Consider these key statistics:
- 70% of sub-Saharan Africa’s population is under the age of 30, a phenomenon the United Nations terms a “youth boom.”
- By 2050, Africa’s youth population is expected to reach 850 million, with one in four people globally projected to be African.
- By 2030, youth will account for 75% of those under age 35 across Africa. (Population Reference Bureau)
- In South Africa, 64% of young people live in urban areas, according to the National Youth Development Agency.
This demographic explosion is driven by higher fertility rates and declining infant mortality. In South Africa, Stats SA reports that women of reproductive age (15–49) give birth to an average of 2.41 children — ensuring a growing population that will need housing, jobs, and support.
Defining the youth market
In South Africa, “youth” refers to individuals aged 15 to 34. Below 15, it’s largely illegal to be employed — except in specific sectors like the arts, advertising, and sports. This age group dominates trends in music, fashion, social media, and increasingly, entrepreneurship — often out of necessity due to high unemployment.
Unemployment and the rental squeeze
Youth continue to migrate toward South Africa’s major urban centres in hopes of employment. Yet the odds are stacked against them: youth unemployment stood at 46.1% in 2025.
High rentals further erode what little income is earned:
- Johannesburg: Bachelor apartments in shared settings can cost R2,500/month.
- Cape Town: Shared rentals are often R6,000/month, though options in the Cape Flats may drop to R1,500.
- Durban: Shared rooms in student housing often require R1,300 per person.
These costs prevent youth from living near job hubs, forcing them to move further away — and spend more on transport — worsening the financial cycle.
Crushed homeownership dreams
With high living costs, the ability to save for a deposit or qualify for a home loan is minimal. Formal sector youth earn an average of R2,893/month; in the informal sector, it’s R1,976, according to Harambee Youth Employment Accelerator. Even South Africa’s minimum wage of R4,992/month falls short of making homeownership viable.
Meanwhile, South Africa faces a housing backlog of over 2.2 million units. With youth population growth at 2.3% annually, simply catching up would require building over 5,200 houses a day — an unfeasible target.
What help exists?
Youth-friendly housing support is limited, but several government and private sector programmes provide hope:
First Home Finance (formerly FLISP)
This is a once-off government subsidy for households earning between R3,501 and R22,000/month to help buy or build their first home. While not youth-specific, it’s ideal for those with a good credit score and pre-qualification from a major bank. [Learn how to save with First Home Finance]
Social Housing Programme (via SHRA)
Targets individuals earning between R1,850 and R22,000/month and offers affordable rentals in well-managed, mixed-income communities — ideal for working youth needing stability and lower costs.
Deferred ownership (Western Cape)
A “rent-to-own” model tied to the First Home Finance scheme. Young couples earning a combined R12,000–R22,000/month can qualify to rent while building equity toward ownership over time.
110% home loans
Many banks offer loans up to 110% of the purchase price for young professionals under 35 — allowing them to finance both the property and legal costs. For those outside professional fields, rent-to-buy schemes offer a longer pathway to saving and credit building.
The co-living and micro-living trend
Shared living models are on the rise, offering modern alternatives to unaffordable rentals:
- Co-living: In areas like Cape Town’s Woodstock and Johannesburg’s Braamfontein, companies like The Student Hub and CoLiv offer fully serviced rooms with WiFi for R6,500–R8,000/month — significantly less than traditional rental setups.
- Micro-units: Developments like 1 on Albert in Woodstock offer semi-furnished studios as small as 21m² starting at prices 20% lower than traditional apartments. These include security, biometric access, communal braai areas, fast internet, and even pools.
"For most young professionals, buying a home is an impossible dream at the moment,” says Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty. “They’re even being priced out of conventional rentals. Co-living fills that gap intelligently through shared amenities and location efficiency."
The road forward
While the crisis affects all South Africans, the youth bear the brunt. Without affordable housing, their participation in the economy is limited, social mobility is restricted, and future wealth creation is stalled.
It’s time to support South Africa’s “youthquake” — through better housing policies, financial education, and scalable alternatives that empower young people to start their property journey, not just dream of it.
