Surge in rental demand to hit hopeful tenants hard

New data shows a huge spike in the number of people looking for rentals across SA. Is your suburb one of the most in demand? Find out here and how this jump in demand might affect hopeful tenants.

South Australian properties are facing unprecedented demand, new data shows, placing renters at risk of financial hardship.

And it’s only going to get even worse, one property manager warns.

A new realestate.com.au report reveals the SA suburbs to have experienced the greatest increase in demand for rentals over the past 12 months.

According to the data, houses in Devon Park, in Adelaide’s inner north, have had the biggest spike in potential renters per listing.

This time last year, each rental on the property search site attracted an average of 48 hopeful renters, whereas now that number has more than doubled to 97.

Rental demand for houses in nearby Ridleyton has increased by more than 87 per cent, with each listing attracting 91 potential tenants, up from 49 this time last year.

Ray White North Adelaide director and property manager Rachel Lawrie said homes in Devon Park and Ridleyton had experienced a surge in demand that had driven up prices.

“Properties that would have been $380 to $420 per week are now cracking into the $500s – newer homes with a double garage can get a six at the front of them,” she said.

“If I put a rental up in those areas, within 24 hours we’ll get up to 40 inquiries.

“It’s a massive problem for those trying to get in, and it’s going to get worse, too.

“I’ve got nine landlords looking at selling their investment properties, and they’re going to be bought by homebuyers, not investors.

“That’s just nine homes, and I’ve only got a tight little portfolio, and the bigger companies with bigger portfolios – goodness knows how many they’re selling.

“That just places so much extra pressure and competition on the homes that are available.”

Ray White North Adelaide’s Rachel Lawrie in Devon Park, where rental demand has more than doubled in the past 12 months. Picture: Tom Huntley

Highlighting the growing affordability crisis, new research from Savvy shows 1.42 million Australians devote between 31 per cent and 45 per cent of their income on rent.

Of the 1005 renters surveyed, half of those aged 18 to 24 said they were stressed about rent, with 40 per cent of those aged 25 to 34 and 33 per cent of those in the 35-to-44 age bracket saying the same.

Savvy chief executive Bill Tsouvalas said that as the numbers of young people stressed about rent rose, the further away home ownership became.

“Rental stress isn’t just being a bit worried about a lack of money for luxuries, it’s a real and persistent financial pressure that affects your ability to pay for necessities,” he said.

“A sudden excess payment, repair bill, or urgent appliance replacement could set them on the edge of real financial hardship – or put them in that position almost overnight.”