Greater Adelaide needs almost 30k more houses by 2029 to cope with growing population
Population projections reveal Greater Adelaide will need almost 30k more homes to be built by 2029 – but will it be enough to ease existing housing pressures?
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Greater Adelaide will need 29,000 more homes to be built within the next five years to cope with the city’s rapidly rising population, new data reveals.
But even with that many properties built, experts warn it won’t be enough to help ease existing housing pressures.
A population projections analysis by .id (Informed Decisions), a subsidiary of PEXA, reveals an extra 64,000 people will be living within 40km of Adelaide by 2029.
Based on that projection, 29,000 homes will need to be built to house them all.
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About 4000 homes will be needed within 5km of the city to cater for the 8000 people expected to move to the area within the next five years.
An additional 6000 will need to be built between 5km and 10km of the city for a projected increase of 14,000 people.
Between 10km and 20km, 6000 more homes will be needed for an extra 10,000 people, and 13,000 will be needed for 32,000 more people between 20km and 40km.
Chief executive of .id Lailani Burra said many people who moved to Adelaide would live in existing homes but the figures represented how many new ones would be needed to comfortably house them.
She said they didn’t consider how many were needed now to help ease affordability and supply issues.
“We know a certain amount of the population is going to come in and we have to find houses to put them in,” Ms Burra said.
“That’s not going to eliminate the affordability problem – the supply is definitely not increasing at a rate that will eliminate affordability issues.
“We haven’t been building enough houses in a long time so we have to catch up.”
According to latest ABS data, 10,123 new dwellings were built across Greater Adelaide in the 2022-2023 financial year, 7525 of which were houses.
So far 2515 new dwellings have been built in the 2023-2024 financial year to the end of September, 1920 of which were houses.
Master Builders SA chief executive Will Frogley said more homes would be needed than those projected, but more people were also desperately needed to build them.
“I think it’s a good thing that the population is going to increase but we need to prioritise people who can help build,” he said.
“The demand will be there but we need to make sure we have enough people to build them.
“Material prices have really settled down in the past few months … it’s much more a people problem at the moment, particularly tradies.”
Real Estate Institute of SA chief executive Andrea Heading said infrastructure to support the increasing population also needed to be considered, particularly roads and public transport.
“We need the infrastructure surrounding the industry to be able to be supported,” she said.
“What we need is a number of groups to work together to make sure that it does happen.
“It’s no longer an isolated problem.”
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