Renting in Adelaide is just as unaffordable as Sydney with even areas on the outskirts of the city now out of reach to average earners, according to the 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index released today.
The Index, which compares rents with incomes, found Adelaide’s affordability has stabilised at a record low over the past 12 months after declining rapidly over the past five years.
The Rental Affordability Index now includes Housing All Australians as a key partner, reflecting the critical role of business and public-private partnerships in addressing the nation's housing crisis.
The Index found Adelaide’s median rent of $560 consumes 30% of the median rental household income - the same proportion as in Sydney. That means even average earners are in rental stress.
Rental affordability is also poor in many regional towns surrounding Greater Adelaide, where rents are now unaffordable for the average rental household.
The situation is most dire for low-income households, with people receiving JobSeeker, pensioners, and single parents working part time facing ‘severely’ to ‘critically’ unaffordable rents.
“The stabilisation of rental affordability after years of decline is encouraging - but there is a long way to go before South Australia is affordable,” said Dr Alice Clark, CEO of Shelter SA.
“This situation remains incredibly challenging for low income households and now also an increasing number of moderate and higher income renters. People who have rented all their lives are being forced to sleep in cars or tents because they can no longer afford a roof over their heads.
“The government must act further, including by expanding social and affordable housing and rolling out more modular housing so those on low wages can afford a home.”
SGS Economics & Planning Principal Ellen Witte said: “Acceptable rents in Adelaide are now extremely scarce, leaving many rental households with no option but to manage unaffordable rents.
“The outskirts of Adelaide — including McLaren Vale, Salisbury and Gawler — offered Acceptable rents in 2019 but are now ‘Moderately Unaffordable’.
“The CBD appears more affordable on paper, but that outcome is driven by a high concentration of studio and one-bedroom stock, which does not meet the needs of many households.”
The report found a full-time hospitality worker would have to pay 31% of their income for a median one-bedroom apartment in Adelaide, above the threshold for rental stress. The city is also ‘moderately unaffordable’ for a couple on minimum wage.
Robert Pradolin, Founder & Executive Director of Housing All Australians, which has recently become a partner in the Affordability Index, said the rental crisis was having a major negative impact on South Australia’s businesses.
“From cafes and hotels to hospitals and childcare centres, businesses across South Australia are struggling to find staff because there’s nowhere affordable for them to live nearby,” he said.
“Housing that people can afford is absolutely critical economic infrastructure and without it our national prosperity is being held back. Governments can’t fill our housing shortfall on their own and so innovative public-private partnerships will continue to be absolutely vital.”
Greater Adelaide
|
Household |
RAI score |
Rent as a share of income |
Relative Unaffordability |
|
Single pensioner |
61 |
49% |
Severely unaffordable |
|
Pensioner couple |
75 |
40% |
Severely unaffordable |
|
Single person on benefits |
39 |
78% |
Critically unaffordable |
|
Single part-time worker parent on benefits |
54 |
56% |
Extremely unaffordable |
|
Single working parent |
127 |
24% |
Acceptable |
|
Student sharehouse |
100 |
30% |
Unaffordable |
|
Single income couple with children |
107 |
28% |
Moderately unaffordable |
|
Dual income couple with children |
214 |
14% |
Very affordable |
|
Minimum wage couple |
112 |
27% |
Moderately unaffordable |
|
Hospitality worker |
98 |
31% |
Unaffordable |
Rest of SA
|
Household |
RAI score |
Rent as a share of income |
Relative Unaffordability |
|
Single pensioner |
94 |
32% |
Unaffordable |
|
Pensioner couple |
120 |
25% |
Moderately unaffordable |
|
Single person on benefits |
59 |
51% |
Extremely unaffordable |
|
Single part-time worker parent on benefits |
86 |
35% |
Unaffordable |
|
Single working parent |
204 |
15% |
Very affordable |
|
Student sharehouse |
148 |
20% |
Acceptable |
|
Single income couple with children |
161 |
19% |
Affordable |
|
Dual income couple with children |
322 |
9% |
Very affordable |
|
Minimum wage couple |
179 |
17% |
Affordable |
|
Hospitality worker |
152 |
20% |
Affordable |
EDITOR’S NOTE: The rental affordability index scores areas based on median rental prices and average income of rental households within the capital city or rest of state area. A score of 100 indicates households spend 30 per cent of income on rent, the critical threshold level for housing stress. A lower score is worse.
A score of 50 or less indicates extremely unaffordable rents, 51-80 indicates severely unaffordable rents, 81-100 indicates unaffordable rents, 101-120 indicates moderately unaffordable rents, 121-150 indicates acceptable rents, 150 or more indicates affordable rents.
CONTACT: Eliot Barham | 0423 921 200