South Australians could be among the biggest beneficiaries of rent‑to‑own housing, as the state eyes one of the country’s largest expansions of the model.
The South Australian Labor party has announced that if it is re-elected at next month’s state election, the government will look to significantly expand its rent‑to‑own scheme, adding new, purpose-built homes to the program.
The state government has pledged to build 2000 new homes as part of the scheme, if re-elected. Picture: Getty
Under the proposed rent‑to‑own expansion, 2000 new homes would be constructed over the next eight years through a $413.5 million investment.
The pledge follows a series of housing announcements from both the SA Labor and Liberal parties in the lead‑up to the March 21 election, including stamp duty discounts for downsizers.
How does rent‑to‑own work?
Also known as rent‑to‑buy, rent‑to‑own schemes involve leasing arrangements that give tenants the option to purchase the property at the end of a set rental period, at a price agreed to upfront.
The model is designed to make it easier for aspiring home buyers to get onto the property ladder by removing the need for a traditional deposit and delaying the requirement to secure bank finance.
In South Australia, if the Labor state government is re‑elected at the March 21 election, it will contribute $280 million to build 1250 of the 2000 new homes.
This would be boosted by a Commonwealth grant of $133.5 million to deliver a further 750 homes, under the $800 million housing agreement signed with the federal government in January 2025.
Under the scheme, eligible buyers can move into a newly built home and pay rent set at 75% of the market rate before purchasing the property.
The scheme was first announced as a trial in May 2025 with over 100 homes offered. Picture: Getty
According to the state government, the purchase price is fixed at the start of the rental period. Renters will have two years to buy the home, with a third‑year extension available if required. If the home is not purchased within that timeframe, it will be sold on the private market.
The rent‑to‑own model is not new in South Australia. A trial was first launched in May 2025, with 125 homes offered through the scheme.
The Labor state government has now committed to expanding the program by 16 times, SA premier Peter Malinauskas said.
“On top of that, money made from the program will be reinvested back in to building even more Rent to Own homes,” Mr Malinauskas commented.
“By giving renters a hand with a reduced, fixed‑price rent now, we’re giving them a real shot at owning their own home in the future.”
Housing Industry Association SA executive director Stephen Knight said the trial had already shown the scheme could help buyers “get off the rental treadmill” and enter the property market sooner.
“An additional 2000 homes over the next eight years will be a significant boost to our housing stock and a welcome contribution to help solving our housing supply crisis,” Mr Knight said.
“With up to three years to save whilst on reduced rent and then purchasing at a price fixed at the time of renting will open the door for many who would have thought that home ownership was just a dream.”
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