Listed: SA towns, suburbs hit hardest by rental crisis

A new report highlights the acute shortage of rental homes across the state and areas where renters with low household incomes are struggling to find property to rent.

It’s not just record sales prices that have been making headlines since the start of the year. According to latest research, South Australia is in the midst of severe rental crisis with low vacancy rates.

A new report released this month has highlighted the acute shortage of rental homes across the state and areas where renters with low household incomes have been hit the hardest.

The Rental Crisis Report commissioned by RentRabbit.com.au has listed SA’s top 20 suburbs that are desperate for more rental stock.

Of the 20 suburbs, 12 are in Adelaide and eight in regional SA. All the suburbs have a vacancy rate under 1 per cent, while a majority have a vacancy rate of zero per cent.

The rental market in SA is in the midst of a crisis.

Adelaide’s northern suburbs of Elizabeth South and Elizabeth North have topped the list with both suburbs recording a low vacancy rate of 0.5 per cent. The average weekly household income for the suburbs is $696 and $699 respectively, the report noted.

In comparison to last year’s figures, Elizabeth South had a vacancy rate of 1.5 per cent while it was 3.5 per cent for Elizabeth North.

Renters in Adelaide’s northern suburbs seem to be facing most hardships with the suburbs of Elizabeth Vale and Davoren Park also on the list. While vacancy rate was 0.4 per cent for Elizabeth Vale, it was recorded at 0.6 per cent for Davoren Park.

Elsewhere in the region, Port Pirie West recorded a vacancy rate of zero with an average household income of $712.

Also recording zero per cent vacancy rates are the regional towns of Goolwa, Encounter Bay, Mannum, Barmera and Waikerie.

According to the report, when a suburb has a vacancy rate of zero per cent, it didn’t mean there were no vacant rental properties. It meant all rental properties were being filled in less than 21 days of being listed for rent.

Not only are these suburbs undersupplied with rental stock, renters have to also face rising rents, according to the report.

The highest surge in rent has been for recorded for Renown Park in Adelaide’s inner-north. With zero vacancy rate, renters will have to pay more should they find a place to rent. The median weekly rent here is up by $80 per week.

In regional SA, Victor Harbour – it has a vacancy rate of 0.3 per cent – has recorded a 20 per cent rise in the median weekly rent. The average weekly household income is $765.

RentRabbit.com.au co-founder Ben Pretty said a lot of tenants were currently facing desperate conditions.

“Many renters in South Australia are being faced with a triple whammy – they live in socio-economically disadvantaged areas, they have low household incomes and it’s incredibly hard for them to find rental accommodation,” Mr Pretty said.

“Some of these renters are living in suburbs that have a vacancy rate of zero per cent, which means rental properties are being snapped up the moment they become vacant. Unsurprisingly, in the vast majority of these suburbs, rents have increased over the past year, often by double-digit percentages.”