If you’re finding it tough to find a rental across Adelaide, you’re not alone.
New data has shone a light on Adelaide’s missing rentals – the areas that have seen the biggest drop in rental listings over the past 12 months.
And they add up – some 697 rental beds were lost across greater Adelaide in March.
According to FoundIt data Playford has been the hardest hit of all the councils, having lost 84 bedrooms in May, with 28 former rental properties listed for sale.
The lack of choice further exacerbated hopeful renters’ problems, with the shortage driving house rents up by $25 a week, and units $45 a week.
Salisbury council renters are also feeling the pinch, with 74 rooms lost in May as 25 properties left the rental market, driving both house and unit rents up by $30 a week.
Rental prices for both houses and units were driven up by the same amount in the city of Charles Sturt, which has lost 24 rentals, or 66 bedrooms.
The rental market is getting tighter. Pic: iStock.
Onkaparinga and Marion councils rounded out the top five, with Onkaparinga losing 54 bedrooms across 17 rentals and Marion losing 18 rentals, or 51 bedrooms.
The loss drove up Onkaparinga’s house rents up by $30 and units $5, while Marion’s houses jumped $40 and its units $50.
Property manager Lauren Renton outside a property she is leasing at Craigmore. Picture: Eleni Tzanos
Ray White Gawler business development manager Lauren Renton, who rents properties across the Playford area, said things were getting tighter for renters.
“It’s very competitive and we have seen some rentals drop out of the rental pool, which is challenging for renters as the vacancy rates were already really low,” she said.
“We are still seeing investors buy but we are also seeing investors sell to realise some of that equity and capital growth that has been strong in recent years.
“We’re also seeing some mum and dad investors taking occupation of their properties, which takes them out of the rental pool and further tightens it.”
FoundIt head of research Kent Lardner.
FoundIt head of research Kent Lardner said rental supply in much of the country was already shrinking before the Budget changes were announced and the trend would accelerate in the coming months.
He noted that sales of investment properties were down on previous years but the rate that they were being replaced by new rental stock was slowing as new investors dropped out of the market.
“There will always be some landlords who need to sell because of divorce, death, retirement, or other reasons – that hasn’t changed – the difference is that fewer new rentals are being cycled back into the market.
“Now, especially in established areas, if a rental is sold, it’s not being replaced.”
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This loss of rental stock will drive up rents, he said.
“There will be many suburbs where rental stock may become so tight that many tenants will be pushed out of their area simply by there not being enough rental homes,” he said
“Those homes that are available will be taken by the tenants with the deepest pockets.”
Mr Lardner added that this trend would worsen in the coming months because investor sales and purchases over the past month likely reflected decisions made before the Budget.
“We haven’t even seen the tip of the iceberg,” he said.
– with Aidan Devine
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