Families struggling to find rental homes as vacancy rates drop under 1 per cent in Adelaide

Amy Savage is the face of SA’s rental crisis. The single mum of twin boys is facing homelessness within weeks as vacancy rates hit “as close to zero” as experts have ever seen.

Fewer than 1 per cent of Adelaide’s rental housing stock is vacant, figures show.

Real Estate Institute of South Australia chief executive Barry Money says regional and metropolitan vacancy rates are “as close to zero as we have ever seen them” and agents say low-income families are struggling to get a roof over their heads.

The crisis has been triggered by a perfect storm of rental properties being put on the market, a growing number of expatriates returning home and the shortage of social housing across Adelaide.

Turner Real Estate chief executive Emma Slape said a 20 per cent drop in available housing stock since February had led to agents across Adelaide being swamped by families seeking average-priced rental homes.

“There is a marked shortage of houses which have at least three bedrooms, in all areas of Adelaide, and families are feeling the stress of this shortage,” she said.

“Demand for units has eased a little (over six months) but demand for family homes has only increased, and we are still getting at least 30 people at one open for family homes in the price bracket of under $500 a week.”

Ms Slape said market analysis showed fewer than 250 houses with three bedrooms or more for $400 a week or less.

“The number only increased to around 500 properties moving up to the $500-a-week mark,” she said. “For many families, that extra $100 simply is not an option for housing.”

Mr Money said the rental squeeze had been exacerbated by a lack of social housing coming on to the market.

Fewer than 1 per cent of Adelaide’s rental housing is currently vacant with families struggling to find a home.

“It has been less than 1 per cent for the past 12 months. In the regions I have been to in the past week, they have the same low vacancy rate but also a lack of social housing being built.

“That means there are even more people vying for the cheaper rentals.”

Mr Money said public servants were also entering the market in some regional areas due to a shortage of government staff housing.

Ms Slape said the problem had been made worse by the sale of tenanted homes to first-homebuyers, due to the state’s booming property market.

Figures released by CoreLogic during the week revealed property values for both regional and metropolitan Adelaide had risen 13 per cent in the past 12 months.

“The increase in buyers has driven strong demand for homes particularly,” she said.

“And often, a property that has been a reliable rental for the market is put up for sale and bought by a homebuyer and then is off the rental market.

“This is continuing to occur in decent volume, so we are seeing a decline in stock of this property type for rental.

“It’s a fantastic outcome for the buyer but it is shifting the pattern of stock away from rentals, and this is starting to become very noticeable.

Ms Slape said the migration to SA from interstate and overseas was also straining the market.

She said most families were applying for more than 10 homes before they secured one, simply due to high demand.

“Any homes which are released to the market immediately attract inquiries and most are let after the first open inspection, where we will have 30 people attend and receive more than 10 applications,” Ms Slape said.

Nazz Mina, of Ray White Glenelg, said a shortage of building supplies was also having a big impact on the rental market.

“Those that are going down the path of development are having some issues with stock supply … which puts pressure on that addition of stock in the market,” he said.

Home struggle looms for widow, sons

– Elizabeth Henson

Ridgehaven widow Amy Savage and her five-year-old twin sons Cash and Cruz are desperately trying to find rental accommodation in Adelaide’s northeast as the threat of homelessness looms.

Ms Savage, who has dealt with unimaginable challenges in recent years with the sudden death of her partner and a cancer diagnosis, is now facing yet another battle – to keep a roof over her young family’s head.

The 29-year-old mother was advised by her landlord last month that they were selling the Ridgehaven house she and her sons had been renting – and they must vacate the premises by August 8.

Since then, Ms Savage has been frantically trying to find a new house in the area but, like many others across the state, has not had any luck securing a new place to call home.

She has attended about 20 open inspections so far.

“We’re facing homelessness,” she said.

Young mum Amy Savage with her twin sons Cruz and Cash at their current home in Ridgehaven, which they will have to leave. Picture: Naomi Jellicoe

Ms Savage, who is studying community services and mental health nursing, does not blame her landlord for her family’s predicament.

She said surging real estate prices were pushing up lease prices and forcing more people into the rentals.

“People who are normally homebuyers are being priced out and therefore moving into the rental market and flooding the market,” she said.

“Either we need subsidies for rent so that these houses are subsidised, or more Housing SA homes need to be built.”

Ms Savage said she had been on the waiting list for a Housing SA home for seven years.

She said there were “some couches which we can stay on” if she doesn’t find a home by the August 8 deadline.

“I’ve just been preparing (Cash and Cruz) for it – we’ve started packing,” she said.

“They are lighthearted towards it but it does stress them out about it.”

The Advertiser reported in May 2017 that Ms Savage’s partner took his own life when Cash and Cruz were only five weeks old.

At the time of the report, Ms Savage has just been diagnosed with leukaemia. She went into remission the following year.

SA Best MLC Connie Bonaros said a lack of private rental accommodation and a huge shortage of public housing was “creating havoc”.

“It is forcing many families and individuals on to the streets – forcing families to sleep in their cars, couch-surfing with friends or moving back in with their parents and/or relatives,” she said.

“This is the government’s mess and the government needs to clean it up.”

Opposition human services spokeswoman Nat Cook said more public housing was needed urgently.

“The homelessness cohort is changing; the challenges of Covid-19 have been far reaching and homelessness is now faced by those previously safe in private rental, finding themselves priced out of affordable housing,” she said.

A spokeswoman for Human Services Minister Michelle Lensink said the government was rolling out its $550 million housing and homelessness plan, announced in 2019.

“(The plan) aims to help more South Australians into homeownership, prevent people falling into homelessness and ensure public housing is available for our most vulnerable,” she said.