SA’s rental affordability crisis laid bare

Rental affordability is at its worst level almost two decades, and possibly the worst in the state’s history, with a new report revealing a median income-earning South Australian can afford just one quarter of all advertised rents without putting themselves in financial trouble.

PropTrack’s Rental Affordability Index 2025 shows rental affordability has never been as bad in the 18 years it has been collecting data for, and paints a dire picture of the state’s rental market.

According to the report, between the March quarter 2020 and 2024’s December quarter, the median rent in Adelaide has increased by $205, with regional SA rentals up by $140.

Adelaide’s median weekly rental price is $580 per week – $10 more than in Melbourne.

PropTrack senior economist Angus Moore said it was tough for hopeful renters.

“Renters in South Australia are facing extremely strained rental affordability,” he said.

“This represents a sharp change, as South Australia was the second-most affordable state in the years prior to the pandemic.

“That said, the differences in rental affordability between South Australia, Tasmania, Western Australian and Queensland are small.”

PropTrack senior economist Angus Moore. Picture: Supplied

In SA, a median income earning household ($95,200) can afford to rent just 20 per cent of all homes advertised over the 18 months to December 2024 – meaning four out of five advertised rentals were out of reach.

The calculations are based on households spending a maximum of 25 per cent of their pre-tax income on rent.

Households at the 70th percentile of income – $150,000 – could afford to rent 88 per cent of all properties advertised last year, while, most concerningly, households at the 30th percentile of income – those earning $58,500 a year – could afford to rent just 2 per cent.

To provide these figures further context, this means, without spending more than 25 per cent of their pre-tax income on rent, those 70th percentile earners could rent a home up to $720 per week, those median income earners up to $450 per week, while those at the 30th percentile were capped at $280 per week.

Concerningly, the greatest price increase nationally has been for our most affordable homes, with the most affordable 10 per cent of properties increasing by almost 55 per cent over the past three years, while those at the top 20 per cent of the market have increased by almost 40 per cent.

Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin

Turner Real Estate chief executive officer Emma Slape said hopeful tenants faced fierce competition, in a market that had seen so much growth.

“Affordability is a massive factor for renters, as this latest report is showing,” she said.

“The market is patchy and pricing is critical.

“Properties further from the city also need to be well priced to ensure that they attract quality tenants.”

She said Adelaide’s rental situation was dire.

“Having worked in property for nearly 25 years, there is no doubt that this is the most challenging time,” she said.

“Typically, when the rental market is tight, there is stock in the market in sales – and vice versa – but over the last few years we’ve experienced a shortage on both sides of the residential market and this has caused the increase in property values and rental rates.”

Brooke Littlely is currently looking for a rental. Picture: Ben Clark

Brooke Littlely, 29, is looking for a rental because her lease expires at the end of the month as the property she is living in is being sold. Having attended about 30 inspections in the past month and submitting 20 applications, she said the market is tough.

“I’ve been to houses that were asking $850 a week that were pretty run down,” she said. “It’s very stressful and it’s very mentally depleting.”

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