Think rent’s expensive now? In the immortal words of Bachman-Turner Overdrive: “B-b-b-baby, you ain’t seen nothin’ yet!”
New analysis of PropTrack data has forecast what Adelaide’s median weekly rents might be in 2035, if the growth seen over the past decade continues.
I hope you’re sitting down.
Throwing forward Adelaide’s rental price growth over the past decade to the year 2035, and, if history repeats, South Australian investors stand to make a killing, while those renting will need deep pockets just to keep a roof over their head.
According to the data, greater Adelaide’s median house rent goes from its current $610 to a whopping $799 per week – a hefty $189 increase.
Australia’s renters have been handed a grim forecast.
Want to save money and rent a unit? That goes from $520 to $681 – up $161.
But that’s nothing on some of the increases seen in our prestige suburbs.
According to the forecast, Medindie house rents will go from $1265 a week to $1802 in 2035 – up $537 a week, and netting its landlord a gross $93,689.61 for the year.
Unley Park renters will need an extra $446 a year, with the $1496 needed in 2035 far surpassing the $1050 needed today.
Their landlords stand to earn $77,776.08 gross that year.
SQM Research director Louis Christopher. Supplied
SQM Research founder Louis Christopher said while building activity projections over the next decade should help stop runaway rental increases, he still advised tenants would be better off buying a home if they could afford it.
“If you have the opportunity to get in as a first-home buyer you should seriously look at it,” Mr Christopher said.
“The market is going to pick up in the next year, but I think the way it’s gone for tenant’s who have turned into first-home buyers has been better over those who remained as tenants, and I don’t see that changing any time soon.”
MORE NEWS:
$660k Aussie home loan record forces first-home buyer rethink
The statistic that should terrify all homeowners
Southern Ocean Lodge link to Adelaide development revealed
Shock result as council forcibly sells 57 properties to recoup unpaid rates
This 100 pound Adelaide home just sold for how much?
How a simple change at the supermarket can get you into a home faster
Even those at the more affordable end of the market will need to find more than $100 more per week, with SA’s cheapest option – Whyalla units – climbing $106 from $250 to $356 in 2035.
Coober Pedy house renters will need another $112, with their rents climbing from $263 to $375.
Harris Real Estate managing director Phil Harris. Picture: Supplied
Harris Real Estate managing director Phil Harris said rental prices would likely follow the growth forecast for house prices over the next decade.
“In a property market that is inclining so quickly, I think rental prices are mirroring that, thanks largely to the ongoing limited supply of property,” he said.
“The main shortage is in the supply of affordable rentals – the higher you go the more opportunities, but below $700 a week is highly competitive.
MORE NEWS
How much you need to save to buy in every Australian suburb
This 100 pound property just sold for how much?
Block fever sparks mad rush for rundown homes
Aussie island property selling for a steal – but there’s a catch
“Post tax, that’s a lot of money people have to pay each week, and especially in a post-Covid world where there’s a growing trend of singles wanting accommodation, and financially, that’s a lot of money especially considering you’ve got grocery costs and bills too.
Mr Harris said if rents are to increase as forecast, so too must wages.
“There has to be a parallel increase of wages to housing costs in order to keep rents from becoming even more unaffordable,” he said.
– with Nathan Mawby
English (US) · 