When less is more – Why more South Africans are choosing to downsize their homes
Downsizing has traditionally been associated with retirees leaving larger family homes, but its appeal is extending to a broader range of buyers.
09/07/2025
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.