New data exposes Adelaide housing crisis for young buyers

1 week ago 18

New data has revealed just how difficult first-homebuyers are finding it entering the market.

Data from FOUNDIT – a property market research company – that analysed agent-advised residential property sales recorded throughout 2025 has shown a mere 5.22 per cent of all sales in metropolitan Adelaide were in the sub-$500,000 price bracket.

The dominant price bracket was $750,000 to $1m, and accounted for 35.72 per cent of all sales.

It is closely followed by $500,000 to $750,000, comprising some 30.92 per cent of all sales.

Those looking to buy in $1m to $1.25m category had 13.12 per cent of Adelaide’s listings to pick from, while 6.91 per cent of all properties fell into the $1.25m to $1.5m bracket.

Regional South Australia, on the other hand, offered far more choice to those on a budget, with 83.74 per cent of all 2025 sales under $750,000, and 51.67 per cent of these under $500,000.

Kent Lardner.


Head of research Kent Lardner said in the report that the $500,000 to $1m mark price bracket was the true “engine room of the city”

“This range continues to support detached housing and family-oriented stock within the metropolitan footprint, without requiring extreme commutes or reliance on high-density apartments,” the report read.

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“As a result, Adelaide avoids the twin pressures seen elsewhere: it does not need to push buyers far to the fringe, nor does it rely heavily on apartments to preserve proximity.

“Housing remains the dominant product, not strata living.”

Mr Lardner said above $1m the market thinned quickly, with transactions above $3m negligible statistically, reflecting a hard income-based ceiling.

 Supplied

Aerial view of Glenelg, with Stamford Grand. Picture: Supplied


He added Adelaide’s affordability had not survived by accident.

“It has endured because the city still functions as a housing market first, not a speculative asset market,” he said.

“The middle remains wide, the extremes are thin, and buyers face fewer forced compromises.

“In a national context increasingly defined by trade-offs, Adelaide stands out as a city where the housing ladder still works – just not at the bottom rung.”

REISA CEO Andrea Heading. Supplied


Real Estate Institute of South Australia chief executive Andrea Heading said Adelaide’s strong price growth demonstrated particularly in the Valuer-General’s figures released yesterday, showed supply and demand pressures were impacting all segments of the market.

“When you look at the number of suburbs with very low or no sales activity in Q4 2025, it tells a clear story about stock availability,” Ms Heading said.

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“Buyers are active, but there simply aren’t enough homes coming to market in many areas to meet that demand.

“This type of environment naturally supports prices.

“It’s not about rapid or artificial price growth it’s about limited supply interacting with steady demand, particularly in established and lifestyle-focused suburbs.”

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