New figures show soaring rental prices as SA’s housing crisis worsens

Desperate renters are paying up to 60 per cent more to keep a roof over their heads, with new figures showing SA’s rental crisis is only getting worse.

Staggering figures have revealed the depth of South Australia’s rental crisis with record low vacancy rates pushing rental prices sky high.

Single father-of-four Luke Greaves told The Advertiser that he was now paying 60 per cent more for a rental property than this time last year.

Mr Greaves, who was paying $360 a week in Port Noarlunga South, said a $540-per-week home with one less bedroom was his only option when his lease was not renewed.

“Because it was so expensive, there were only about 30 people that applied,” Mr Greaves said.

“I had to take it … I would move out of the area but when you’ve got kids in school it’s difficult.”

Latest data from Proptrack shows the median rental price in greater Adelaide is $495 per week for a house and $450 per week for a unit or apartment.

In just the past 12 months, rent in greater Adelaide has gone up by 9.5 per cent for houses and 7.8 per cent for units with vacancy rates as low as 0.3 per cent.

That number soars even higher when prices are compared over the past five years.

Since 2017, rents have risen 24.3 per cent for houses and 17.4 per cent for units.

Renters have told The Advertiser that bookings for open inspections fill up within minutes, with up to 70 people lining up at most showings around the CBD.

Last week, The Advertiser reported on a Mannum couple forced to live in a tent on the banks of the river because they were unable to find a rental in the region.

Other South Australian renters have shared how they endure poor and dangerous living conditions over fear of being kicked out of their homes.

Luke Greaves at his rental home at Port Noarlunga South with his daughter Anabel Greaves. Picture: Mark Brake

Renters in Adelaide face tough competition with dozens lining up for open inspections.

The quarterly Rent Rabbit Tenant Opportunity Report, which assesses affordable housing within commuting distance to the CBD, found that rent was cheapest in Mt Barker, Klemzig and Happy Valley – averaging between $410 and $420 per week.

Other “affordable” suburbs within the top 20 list were Dernancourt, Broadview, West Croydon, Mawson Lakes and Woodville West.

Proptrack director for economic research Cameron Kusher said more investors were selling out of the property market, leading to an increase in private ownership.

“Some investors were selling to make a bit of a profit, but others were selling to use the funds to renovate their primary residences,” Mr Kushner said.

Mr Kusher said while a rise in interest rates should see housing prices fall, the same could not be expected for the rental market.

Tracy, 59, and Allen Short, 60, have lived in a tent for three months while trying to find a rental in the area. Picture: Dean Martin

Rental prices to surge across Adelaide, South Australia, as demand outstrips supply

CoreLogic head of research Tim Lawless said the rental market would likely get tighter as Australia returns to a new post-Covid normal.

“It’s extraordinarily tight and we are seeing vacancy rates at record lows across the entirety of the country, and rents are rising well above income levels,” he said.

“Rents are increasing an average of 9 per cent per annum while wages are only increasing by 2.5–3 per cent per annum, so you can see why rent affordability is becoming a problem.”

An Anglicare study released in March found just two homes on the market suitable for single minimum-wage earners out of 1125 listings on realestate.com.au.

South Australian Council of Social Service director Ross Womersley said the rental market was broken.

“Things are so tight in the rental market that landlords are purchasing large multi-bedroom properties and then renting each of the rooms out separately for double and triple the amounts they might be likely to charge for the property as a whole,” he said.

Originally published as New figures show soaring rental prices as SA’s housing crisis worsens