Number of rental properties plummets as SA regional vacancy rate ranks lowest in Australia

The number of vacant rental properties in regional SA has plummeted as shock figures reveal the stark fight facing tenants desperate for a place to live.

Shocking data has revealed how the pandemic has decimated the number of available rental properties in regional South Australia.

The struggle to find a rental has been exacerbated by the low vacancy rate, with regional South Australia reporting the lowest in the country.

In April the Barossa Mid-North region vacancy rate was the lowest in the state and fifth lowest in the country at just 0.74 per cent.

The South-East, which had a record low of 0.74 per cent in October 2022 increased marginally to 0.9 per cent by April — the twelfth lowest in the country.

PropTrack economist Anne Flaherty said demand pressures were increasing as the supply of available rental properties declined while the population of South Australia increased.

PropTrack economist Anne Flaherty. Picture: Supplied

Latest PropTrack figures reveal the total number of rentals listed on realestate.com.au since March 2020 has dropped by 60 per cent across regional South Australia.

The South-East has also seen a 53 per cent drop in the total number of rentals listed on realestate.com.au since March 2020.

Ms Flaherty said rising interest rates and uncertainty in the market had seen investors sell their properties rather than rent them.

“There have been relatively more property investors selling than buying,” she said.

“It’s great from the perspective of the owner-occupiers – but for renters it’s leading to a decline in the availability of rental properties.”

Ms Flaherty said the resurgence of international tourism after the pandemic had seen a return of long-term rentals entering the short-term Airbnb market.

Ms Flaherty said the ultimate solution to the rental crisis is increasing supply and called on governments at all levels to incentivise investors to develop more housing.

“The reality of the situation is that property investors are the main providers of rental accommodation in this country,” she said.

“With the increases in interest rates, the increases in building costs, the margins have been squeezed on those more affordable properties, particularly units.”

With growing regional population Ms Flaherty said “serious thought” needed to be given on how to increase the supply of houses.

“A lot of regional areas over recent years have seen the population growth far outpace the supply of new homes,” Ms Flaherty said.