Census shows more than 80,000 privately owned homes are vacant while people are desperate to rent

The state’s rental vacancy rate is at a critical low but Census figures have revealed a startling number of homes sitting empty. Now there is a call for a tax to be introduced to fix the problem.

Tens of thousands of homes are sitting empty as hundreds of South Australians desperately search for rental properties, latest statistics have revealed.

The 2021 Census has shown a total of 83,821 privately-owned units, apartments and houses were unoccupied across the state when the five-yearly survey was conducted last August.

The data has emerged as welfare agencies and peak housing bodies demand an urgent co-ordinated multi-agency response to help people find accommodation.

This includes calls for an investigation into why so many potential homes remain unoccupied when the state had 0.3 per cent rental vacancies in May – the lowest rate in the nation.

The crisis has seen prospective tenants forced into caravan parks, motels and other temporary accommodation, with reports of some people sleeping in tents in suburban backyards.

Open inspections of rental properties regularly are attracting large crowds while rental prices have increased by an average of 20 per cent in 12 months.

A comprehensive report by one of the state’s biggest social housing providers, AnglicareSA, has warned the rental crisis will worsen if urgent action is not taken.

South Australians are being forced to live in caravans and tents because of the escalating rental crisis. Picture: Amy Cracknell

The Greens have called on the state government to follow the lead of Victoria and implement a tax on vacant residential properties.

“We have people sleeping on the street, in tents, cars and caravans, yet there are thousands of vacant homes in SA,” said housing spokesperson Robert Simms.

“This is an absurd situation. The Government must take action.

“A vacant property tax would encourage owners to sell or rent out their properties – boosting housing supply at a time when it’s desperately needed.”

Mr Simms said the tax could be applied on residential properties left vacant for more than 12 months for no valid reason, with the money raised to be spent on social housing.

The Greens have been calling for a range of measures to tackle the deepening rental crisis, including boosting the investment in public housing and rent controls.

Mr Simms will introduce legislation on Wednesday to limit rent increases to once every 24 months in line with inflation.

However, Shelter SA executive director Dr Alice Clark said there should be incentives offered by the government to encourage owners of empty properties to make them available for rental – rather than punitive action like a property tax.

Dr Clark said a study by her organisation during the pandemic found there were numerous empty properties within the Adelaide CBD which could provide more housing.

“If activated, vacant and under-utilised properties could be used to reduce the number of households living with housing stress, experiencing homelessness and living in unsafe or unsuitable accommodation,” she said.

Isaac, 3, Jamie Richards, his partner Mikaela Dellow and Ryley, 1, are facing homelessness in less than two weeks. Picture:Morgan Sette. Read their story here..

Dr Clark said measures such as vacancy taxes, council rate surcharges and financial or planning incentives were used overseas to reduce the levels of vacant properties.

“We do not want to punish owners or force them to tenant properties, but incentivise them to do so,” she said

Dr Clark said some vacant properties were tourism accommodation properties, such as those offered online by booking agents such as Airbnb, while others were undergoing refurbishment or renovation.

“There are lots of reasons why they are left empty, in addition to foreign investment and capital gains tax,” she said.

Dr Clark said councils could be used to identify vacant properties by dispatching staff within their boundaries and checking streets for empty homes.

“They could then engage with the owners to understand the reasons why properties are empty and incentivise them to secure tenants, rather than punish them to do so, she said.

“When property is withheld from the private rental and sales markets, whether being left vacant or used as an Airbnb, upward pressure is placed on prices by reducing supply.”

UniSA housing expert Professor Chris Leishman said some of the vacancies recorded on Census night were “easy to explain and reflect normal market processes”.

“There always has to be some vacancy for a market to function properly because it takes time to move home, redecorate dwellings and prepare them for sale or rent, and then go through the transaction process,” he said.

Prof Leishman said it also was common for property vacancies in areas where there were seasonal agricultural or horticultural industries, such as the Riverland.

“For part of the year there will be a lot of demand for accommodation from seasonal workers, but this turns to an oversupply and vacancy out of season,” he said.

Prof Leishman said other parts of the state had strong tourism sectors “so holiday homes and Airbnb properties will be more abundant and there is a chance they will happen to be vacant on Census night”.