The rental market in Adelaide has been facing significant challenges, but recent trends suggest that relief may be on the horizon.
Even though median rents were up 9 per cent year-on-year in November, there are signs that things are improving in the rental market.
Adelaide rents have been on an upward trajectory since October 2016, peaking in November 2022. During this period, rents increased by 45 per cent, translating to a dollar increase of $150 per week.
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However, since the peak, the rate of rental growth has been decreasing providing hope for renters facing high costs.
Meanwhile, rental vacancy is also showing signs of improvement as the volume of properties available to renters has grown.
![Karen Dellow - PropTrack senior analyst - for herald sun real estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
PropTrack senior analyst Karen Dellow. Supplied
In Adelaide, the vacancy rate is now at 1.24 per cent, a 36 per cent increase over the past year. Remarkably, in the past month alone, the rate has jumped by 23 per cent.
Several factors are contributing to these improving vacancy rates.
More investors have entered the market, increasing the number of properties listed for sale. In the past 12 months the number of investors taking out home loans in South Australia has increased by 9 per cent.
Rental relief is in the pipeline for SA tenants, PropTrack data shows. Supplied
Additionally, in the recent Realestate.com.au Property Seeker Survey, most first-home buyers claimed that they were buying a house in order to stop renting.
These factors collectively boost property stock while reducing demand. Specific areas in Adelaide have seen the largest increases in vacancy rates.
Adelaide – North, and Adelaide – Central and Hills have experienced year-on-year increases of 58 per cent and 34 per cent, respectively.
New PropTrack data suggests Adelaide’s rental crisis is easing. Pic: Supplied.
Adelaide houses have witnessed a more significant increase in vacancy rates compared to units, with a 39 per cent growth for houses versus 31 per cent for units.
These improving vacancy rates and slowing rent increases suggest the Adelaide rental crisis is easing, offering a glimmer of hope for renters in the city.
– Karen Dellow is PropTrack’s senior analyst
