Funeka Ngewu, Head of Claims at Momentum Insure
As housing costs climb and lifestyles shift, Gen Z is rethinking the traditional path to financial stability. Born between 1997 and 2012, they are digital natives shaped by the 2008 recession and Covid-era lockdowns. Smart, cautious, and impact-driven, they value flexibility and work-life balance over long-term commitments.
Many are opting to rent rather than buy, challenging the traditional generational legacy of homeownership. But the dream of “home” is not dead, it is evolving. For Gen Z, homes are less about permanence and more about adaptable spaces that support both work and rest.
The Changing Face of Home Ownership
For many Gen Z-ers, home ownership is not on the cards just yet. According to the Pam Golding Property Group, the average age of first-time buyers is 35, and the number of buyers aged 26-35 years has declined from 31% in 2018 to 26% in 2024, due to affordability.
This is not surprising. Gen Z-ers are just starting their careers or may still be studying, so they are often living with parents or renting an apartment. This gives them the flexibility to accept a promotion in another city or to lean on family support during busy times.
When Gen Zs enter the property market, their priorities differ from those of more established homeowners. They lean toward low-maintenance, “lock-up-and-go” options and affordable properties in metropolitan areas, especially those close to public transport and schools.
Their housing choices reflect their savvy. This is a generation that values experiences and adventure, so it makes sense that their homes are designed to live large within smaller budgets. By opting for compact spaces, they can invest in standout furniture and décor, while freeing up cash for smart home tech, from security and lighting to gaming and entertainment.
Re-thinking the Role of Insurance
Renters often overlook insurance, but it matters. Property insurance covers the building itself, while home contents insurance protects what’s inside like your TV, clothes, appliances, laptops, and more. For renters, this cover is critical, since they have less control over maintenance and security. It provides peace of mind that if something goes wrong, you can replace what you’ve lost and keep moving forward, all while tailoring cover and premiums to fit your budget. Contents insurance not only protects renters from theft and damage but also covers their possessions in case of events like flooding and fire. Getting the right level of cover is important, as undervaluing your possessions to save on your premium could mean that your insurance cover may not put you in the position you were in before the incident occurred.
Embracing the Future of Living
Despite changing living patterns, South Africans still cherish the dream of owning their own home. It’s a powerful symbol of success and stability - even if rising property prices and the cost-of-living mean deferring this goal for now.
We are seeing Gen Z buyers exploring alternative models, like shared ownership, co-living spaces and flexible financing.
For others, especially those looking for convenience or who plan to work overseas, rental agreements may be exactly what is needed. They are able to pick and choose a location that’s convenient for work and don’t have to worry about home maintenance.
Whatever path you choose, it’s prudent to make sure you are protected, with your living space and belongings secured. With contents insurance, you can safeguard your possessions and quickly recover from unexpected events.