Affordability, life stage and semigration are some of the reasons why buyers are opting to downsize their properties, says Bradd Bendall, BetterBond’s National Head of Sales. “Downsizing has traditionally been associated with retirees leaving larger family homes, but its appeal is extending to a broader range of buyers – including budget-conscious families, young professionals and remote workers. Many of these buyers want homes that may be smaller in size, though not necessarily lower in value.”
Empty-nesters and retirees
Leading the downsizers’ pack are older homeowners nearing or in retirement. With children grown and gone, many are selling their large homes to purchase low-maintenance, lock-up-and-go properties, says Bendall. This trend is supported by data from the Q4 2024 FNB Estate Agents Survey, which found that 21% of sales were due to a change in life stage.
Similarly, Lightstone reports that many retirees who bought non-retirement homes later in life opted for sectional title properties or lock-up-and-go homes in lifestyle estates. BetterBond’s application data for the 12 months ending in May shows that over-60s are spending on average R2.2 million on a home – an increase of almost 3% from the previous year. This also highlights the fact that a smaller property does not always mean it is lower in value. Security, convenience and access to amenities often come at a premium price.
Budget-wise
Beyond retirees, financial pressures are encouraging many South Africans to rethink their housing needs. “Rising living costs and economic uncertainty have pushed middle-income earners to sell their larger properties to buy homes that are more affordable,” Bendall notes. These buyers can then manage bond repayments, reduce monthly expenses and better adapt to their changing financial circumstances.
Younger buyers
Millennials and younger buyers downsize more for convenience and lifestyle than financial necessity. “They are drawn to smaller homes that offer greater convenience and access to recreational facilities,” says Bendall. “Sectional title properties, apartments and townhouses offer flexibility and require less maintenance.”
Digital nomads and remote workers
The rise of remote work and digital nomadism is also reshaping house preferences. “Remote workers prefer compact, high-end apartments or co-living homes with fast internet and flexible leases,” explains Bendall. “Whether they’re based in the city or moving to quieter coastal towns, digital nomads prioritise simplicity, connectivity and flexible living.” As a property investor, buying an apartment close to tech hubs such as Cape Town, Stellenbosch or Sandton in Gauteng will yield excellent returns given the strong demand for rental accommodation.
Smaller can be better
There are considerable benefits to downsizing. In some cases, a smaller home may mean reduced monthly bond repayments, lower utility bills and easier maintenance. However, downsizing does not always mean moving to a home that is lower in value, explains Bendall. “The move could be to a smaller home in a better location, or to a modern home with high-tech security or smart home automation.”
A lock-up-and-go property appeals as it allows for greater mobility, remote work flexibility or the option to generate an income through short-term rentals like Airbnb. “Downsizing also speaks to the emerging trend of ‘quiet luxury’,” says Bendall. “Wealth is implied, rather than overstated. A carefully curated home that is functional and sustainable exudes sophistication and luxury.”
Moving into a smaller home within a gated community or secure estate brings additional peace of mind, while inner-city apartments and mixed-use developments offer convenient proximity to shops, workplaces and recreational spaces.
Research also points to the emotional and mental benefits of downsizing and decluttering, adds Bendall. “For many homeowners, swapping a larger property for one with less onerous upkeep brings unexpected relief. As the to-do list of home repairs and chores becomes considerably shorter, there’s also more time to explore new hobbies or travel.”
Compact carbon footprint
Beyond the convenience and possible cost-saving, downsizing allows for a more sustainable lifestyle, says Bendall. The ‘tiny home movement’, for instance, is gaining momentum in South Africa, with some choosing to live in homes no larger than 37 square metres. “The emphasis with these homes is on functionality and simplicity, not size,” says Bendall. “These homes, made of eco-friendly materials, often incorporate energy-efficient systems such as composting, rainwater harvesting and renewable energy options.”
“No longer only a financial decision, downsizing is becoming a strategic, lifestyle-enhancing choice for buyers of all ages. Increasingly, a broader cross-section of buyers is choosing to live smaller while living better,” concludes Bendall.