Sustained cost-of-living pressures, the need for shared support and growing safety concerns are driving the return of multi-generational living.
This shift is not just about tightening belts, said Paul Stevens, chief executive officer of Just Property.
Co-living as families
He said that families are making long-term decisions to live together in ways that distribute costs, responsibilities and care.
“Adult children are moving home to reset financially. Older parents are moving in for support and connection. Extended families are pooling resources to rent or buy together.”
TUHF recently said the door to the property market remains firmly closed for many aspiring homeowners and property entrepreneurs.
The financier noted that this is despite access to property ownership having long been one of the most reliable pathways to wealth creation.
The issue is often a lack of accessible, flexible financing, said Letlatsa Lekhelebana, client coverage regional manager at TUHF.
More than shared housing
The property rentals and management real estate brand said what is emerging is not just shared housing, but shared ecosystems. It adds that this shift is directly influencing buyer and tenant demand.
Homes with cottages, separate entrances and flexible layouts are moving to the top of wish lists.
“Properties that can adapt, whether through conversions or additional units, are attracting stronger interest and often transact faster.”
Practical innovation waves are hitting the sector
The chief executive officer said that they are also seeing a wave of practical innovation, with garages being converted into flats. He added that spare rooms are increasingly being turned into income-generating spaces.
“Homes are evolving to reflect real life, not outdated ideals,” said Stevens.
Trend creates resilience for landlords and investors
For landlords and investors, this trend is creating resilience, he said.
Stevens noted that properties with dual-living potential are proving more competitive and adaptable in a changing market.
Note of caution
However, there is a clear note of caution, said Just Property. It emphasised that conversions and additions must meet zoning, compliance and insurance requirements.
“Done correctly, they enhance value. Done poorly, they can create long-term risk.”
The bigger picture is clear: adaptability is becoming the defining feature of South Africa’s residential market, Stevens said.
He added that the traditional single-household model is giving way to something more flexible, collaborative and reflective of the realities South Africans face today.
“The new face of property isn’t coming. It’s already here.”
South Africa is said to have a severe shortage of affordable housing for senior citizens, with adult children increasingly facing the challenge of providing secure, dignified accommodation for their ageing parents without derailing their own financial futures.
“And with the average age of first-time homebuyers in South Africa having risen to 36, an age at which many people’s parents may already need housing support, the window for proactive planning to deal with this situation is narrower than many people realise,” said Stephen Whitcombe, managing director of leading Johannesburg property group FIRZT Realty, earlier this month.
The company said that rather than an adult child buying a property of their own with room to house their parents, many are instead moving back into their original family homes, often with plans to eventually buy these properties from their parents.
“This makes particular sense for adult children who are still renting and saving up to buy their first homes,” said Whitcombe.
“Moving back into a family home owned by their parents most often enables them to pay little or no rent for a certain period and save aggressively for a deposit to acquire the property, while also creating natural proximity for caregiving.”
Whitcombe said that the arrangement needs to be properly planned and legally structured, but it offers parents certainty that they can liquidate their biggest asset and use the proceeds to buy or build a smaller home, or to supplement their retirement funds.
For the adult child, he said the plan can accelerate the transition from renting to owning and create an opportunity to acquire a familiar property at a fair and potentially modestly discounted price.
He said that standard transfer duty may still be payable, as home sales to family members are not exempt. Capital gains tax may also apply to the parents, depending on how much the property has appreciated over the years, although the threshold for a primary residence is now R3 million, he added.
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