What we learnt:

We have found signs that young people are delaying adulthood. 53% don’t own a car, 0% own a home, 3% are married, and 80% are not yet parents. In addition, 43% are living with their parents.

Only four out of the thirty interviewees are saving to buy a car.

“I really need to get a car. I’m just tired of just not having one. And potentially I’m actually saving for anything but like a car right now there’s a bit of a priority or my next goal. But I really would love to acquire a house also.” – Balekane (28, Black, female)

“My first goal, I would say dream car, but I would say next one is to travel and further look down the line to purchase a home.” – Gabby (21, Mixed race, female)

Thirteen are in a relationship, but only one is married. 67% are positive about marriage, which is indicative of delaying marriage. Nevertheless, it is pertinent to be cognisant that some young people question the notion of marriage.

“Oh, I’m kind of in between at the moment in my life because I see the way marriages are going at this point in my life. Marriages nowadays aren’t the same as they were back then. So I’m kind of shifting towards not really wanting to get married, but rather have a life partner. Yeah… But I did want to get married at some point. I mean, it’s still there, that thought of wanting to get married. But I’m shifting more to the side of actually just having a life partner because marriages are complicated right now.” – Nelly (20, Black, female) 

“I am very touch-and-go about marriage personally. I believe that there are some people that will thrive better in a romantic relationship. And as for me, I believe that I can still thrive by myself. I feel like it would be a win, but it’s not a necessity for me.” – Sunita (22, Mixed race, female)

The overwhelming majority of this group are not parents. However, they are not averse to having children.

“I definitely see myself as a mother um I love kids as well, I love children so much it’s just that I haven’t actually uh got someone or a partner who would be willing to um do like the parenthood thing thingy with me and also I also feel like I’m still young there’s like a still a lot that I need to learn or still a lot that I need to acquire before I could have um children.” – Lovemore (Black, female)

A large portion of this cohort lives with their parents because moving out and buying their own place is unaffordable for them for now.

What does the research/experts say:

The trend of young people delaying adulthood has been widely documented in various research studies, surveys, expert opinions, and case studies. The transition to adulthood is happening at a slow pace. Young people are taking longer to finish their education, establish themselves in stable careers, marry, and start families – some because financial constraints slow them down and others because of a shift in mindset regarding when/if these milestones occur.

Regarding ownership, the prospect of getting on the property ladder continues to be less attainable. Young people are instead turning their attention towards car ownership. A recent survey of 2,032 UK drivers by the online motoring marketplace Auto Trader found that 52% of the 18-29 crowd think buying a brand new car is a bigger milestone than buying a home. Data from WesBank reveals a growing preference among South Africans aged 35 and younger for owning private transport as of April 2024. This data contrasts with global predictions of a shift towards transportation alternatives such as e-hailing. Data from market intelligence company Lightstone Property shows that fewer South African youth are buying houses and cars as opposed to ten years ago. In 2012, those under 35 accounted for 39% of new car purchases and 45% of property purchases above R20,000, but by 2022, these numbers had dropped to 31% and 38%, respectively. Renier Kriek, the MD. of Sentinel Home, a nonbank home loan provider, says affordability and the ever-increasing inflation has meant most people delay buying their first homes.

First marriage and first parenthood are not only being postponed, but they are also becoming increasingly disconnected from age and each other.  In the US, in 1950, the average age of married young people was in their early 20s. After 2000, the average age increased to above 25 and has steadily increased since. The average age of a groom is 30 years old, while the average age of a bride is 28 years old, according to the latest U.S. Census data. Statistics South Africa’s most recent marriage and divorce data published in 2023 states that the median age of brides was 33 in 2021, up 1% from 2017. “This percentage of single women entering the real estate market is likely to have increased in the past two years, as women are waiting longer to get married,” says Carl Coetzee, chief executive of BetterBond.

A majority of young adults in the U.S. live with their parents for the first time since the Great Depression according to September 2020 data from Pew Research Center.  In the UK, the proportion of single, child-free 20-to-34-year-olds living with their parents went up 55% between 2008 and 2017, according to research from Loughborough University. According to data in the Forerunner report released by the UCT Liberty Institute, young South Africans are taking longer to leave their parents’ homes.

What can businesses and policymakers do about this?

The consumer this trend represents is either postponing milestones for economic reasons or choosing this lifestyle to pursue further education or travel. It is crucial to identify which consumer represents your target market. For economically challenged consumers, offering value for money and transparent pricing would be suitable. For those young people who are opting to delay adulthood, many are saving on rent by staying with their parents and are using their income to travel or purchase luxury consumer goods.

Employers should take heed of this trend of slowing down their coming of age. Some employers offer employees affordable housing solutions to attract and retain young workers. Employers can also give direct financial support, such as a down-payment assistance program and help with closing costs or guidance on accessing local grants. Major tech companies like Meta and Tesla are building ‘company towns’ for their employees. This approach is controversial because of the potential strings attached to the employer-employee relationship. Financial service companies have long been doing this for their employees. Standard Bank launched a competition for first-time home buyers to have their outstanding home loan balance settled to a maximum of one million rands. Ensuring that wages increase steadily is also vital.

It’s in the interests of lawmakers that young people participate in the economy as early as possible through paying taxes and spending their money. Giving them a step up to accomplish these milestones earlier would be recommended. The biggest driver of economic participation of young South Africans is to address the unemployment problem. Tax leniencies for first-time home purchasing would improve affordability. Delaying parenthood is likely to be discouraged in Western nations with declining birth rates. There is less urgency in South Africa because of our youth bulge. Supporting women who want to delay parenthood is advisable through readily available birth control and education campaigns.

The data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.

The data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.

By Flux Trends 

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