Emily Olle | Rental affordability could worsen SA’s young person brain drain

When it comes to the battle of the states, SA always had one trump card. But we might have now lost it – and our young people, writes Emily Olle.

As a teenager in South Australia, the liturgy of our state’s parochial church concludes its teachings with a verse: “Do unto others as you would have them do unto you, and please, please don’t move to Melbourne or Sydney”.

‘Brain drain’ has been one of South Australia’s greatest battles when it comes to keeping talent inside our border, as young professionals chase career progression or opportunities away from our great state.

For many, the bright lure of eastern states comes often not from want but necessity.

Young people are forced to weigh up the potential benefits of a bigger career pool against a lower cost of living and, particularly for those at or fresh out of university, significantly lower rental prices.

But South Australia might just have lost one of its biggest assets against brain drain.

New data has revealed rent for Adelaide houses is now about $60 a week higher than it was a year ago – making them more expensive than those in Melbourne and Hobart.

When even a share house is cheaper in the eastern states, SA is losing its trump card in the battle against brain drain. Picture: iStock

This is in part due to Melbourne’s propensity for apartment living, compared to Adelaide’s tilt toward homes or share houses, but the outcome remains the same when it comes to the rental crisis.

Without available, affordable housing, SA’s exodus of young professionals could worsen as they seek higher incomes with similar living costs.

The Malinauskas government has certainly acknowledged the desperate issue of housing availability and splashed the cash to go with it after years of limited action from its Liberal predecessors.

On Tuesday, it was announced up to 1000 homes would be build under the state government’s latest rezoning plan, building upon the release of 23,700 extra homes last year – the largest single release of residential land in the state’s history.

In a rousing column on Monday, Housing Industry Association SA Executive Director Stephen Knight said SA’s construction industry was up to the challenge, calling on the state and federal governments to boost apprentice and trainee numbers and increase skilled worker immigration.

The sobering reality is: it has to be.

The Malinauskas government is pushing for more new homes — but can it help ease the rental crisis short-term? Picture: NCA NewsWire/Brenton Edwards

To the government’s credit, young homebuyers have been front and centre in budgetary and legislative measures. Stamp duty has been abolished for first home buyers and red tape slashed for new builds.

But home buying is very different to renting — and the rental crisis does not have the privilege of time.

A series of rental reforms which include extra protections for renters, along with bans on rent bidding, and a number of affordable housing projects have been announced for construction, but will this be enough?

Last year, the Greens announced they would introduce a private members bill to freeze rent prices, following a similar failed move earlier that year to cap rent increases in line with inflation.

While construction and increased housing stock is the long-term answer to the state’s housing disaster, the rental crisis — and retaining South Australians in SA — also needs action now.

Rent freezing, or another immediate solution, might be what it takes if this government wants to get serious about keeping a diverse, skilled pool of young people in our state — and in their homes.