SA’s rental crisis: Regional towns among places where rent is set to rise most

“There’s a tsunami coming.” A new report has listed the 20 places in South Australia where prices could soar for tenants – and some regional spots are set to be hit hard.

Adelaide’s regions are facing record low vacancy rates as demand soars for rental properties, with a new report warning prices could rise even higher over the next 12 months.

Artificial intelligence company HOOD.ai analysed rent and vacancy rates over a 12-month period to find the 20 places where prices could skyrocket, and found rural areas are likely to be hit hard.

A median increase of 32.8 per cent was predicted for Kapunda (currently $385) and 16.7 per cent predicted for Mount Gambier ($245).

Mount Gambier real estate agent Bianca Taylor said interstate buyers with “deeper pockets” were driving the price surge.

“Those coming from interstate they are the ones who are coming with a little bit bigger budget,” Ms Taylor said.

“Unfortunately, instead of slowly increasing over those five years, it’s just gone bang – and increased over the last 18 months to two years.”

Ms Taylor said until demand for housing stabilised, prices would continue to rapidly grow.

Mount Gambier homelessness organisation ac.care said a lack of available housing in country areas was pushing people “to the brink of homelessness” and called for greater financial support.

“An increasing number of individuals and some families [are] taking up the option of caravan parks, tents and other short-term accommodation, which is not suitable long-term, especially heading into winter,” chief executive officer Shane Maddocks said.

“We need longer term solutions, including an increase to Jobseeker and rent assistance to lift people out of poverty and more investment in community and public housing.”

Earlier this year, hardworking Mount Gambier mum Jodie Redman told how the rental crisis had torn her apart from her children because she could not find a home to house them.

A Mannum couple was also forced to live in a tent on the banks of the river because they were unable to find a rental in the region.

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

Jodie Redman was separated from her two kids for four months because of Mount Gambier's rental crisis. Photo: Arj Ganesan

Port Augusta residents told The Advertiser it was “nearly impossible” to get a house in the region, with an average of just 18 properties listed for rent per month over the past 12 months.

Independent member for Stuart Geoff Brock told The Advertiser the region’s rental crisis had been brewing for some time.

“The demand for housing in Port Pirie, Port Augusta and Peterborough in particular is absolutely phenomenal,” Mr Brock said.

“There are a lot of people coming from interstate looking at relocating in our regions and that’s now causing problems because those houses are no longer available for rental.

“That’s being compounded by the attraction to come back into the regions – the Upper Spencer Gulf in particular … we’re attracting the workers for (major projects) but there are no rentals available for them.”

Independent member for Stuart Geoff Brock said more needed to be done to tackle the regional housing crisis. Picture: Brenton Edwards

Mr Brock welcomed the Malinauskas government’s $180m social housing injection to tackle homelessness, along with renovations on 350 vacant Housing Trust homes, but said councils and the private sector also had a role to play.

“We all need to work together … there’s a tsunami coming,” Mr Brock said.

“The cost of living is going up pretty quickly at the moment and the demand for rentals is absolutely out of this world.

“Councils need to ensure they have enough land that is zoned accordingly for residential and then we have to work with the private sector to establish new homes in those areas.”

It isn’t just the regions facing a rental rort, with metropolitan areas also likely to be hit by price surges.

Campbelltown, where the median weekly rent for a unit is currently $445, was predicted to rise by 30.9 per cent.

HOOD.ai chief executive Tommy Fraser said the report highlighted the depth of SA’s rental affordability crisis and blamed low vacancy rates for pushing up prices.

“Traditionally, when renters get priced out of an area, they tend to shift to a cheaper suburb nearby,” Mr Fraser said.

“But that’s become increasingly hard in the current market, which is forcing tenants to move even further in search of affordable accommodation.”

Mr Fraser warned tenants in the 20 listed suburbs that there was “high chance” landlords would increase rent at their next review.

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.

Earlier this week, single father-of-four Luke Greaves told The Advertiser that he was now paying 60 per cent more for a rental property in Port Noarlunga South than this time last year.

Originally published as SA’s rental crisis: Regional towns among places where rent is set to rise most