SA rent vs buy: Shocking timeline revealed for when owning wins

15 hours ago 1

“Rent money is dead money” – that saying might have rung true some years ago but the reality is it’s cheaper to rent than own across almost all SA suburbs and towns.

And it will be for many years yet, a new report shows.

According to REA Group data, assuming a 30-year loan with a 20 per cent deposit at an interest rate of 5.75 per cent and rents compounding using the 10-year average monthly rate, mortgages the crossover month for mortgages to become cheaper than renting across metro Adelaide is February, 2033.

Assuming that interest rate increases to 6.1 per cent, and that time blows out to September, 2033.

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At 5.75 per cent, monthly mortgage repayments across greater Adelaide sit at $3968, compared with just $2600 for monthly rents.

Increase that to a 6.1 per cent interest rate and those figures jump to $4121 in mortgage repayments compared with $2600 in rent.

Renters in SA’s blue chip suburbs will have longer before it becomes cheaper to buy.

Much longer, in fact.

With average monthly mortgage repayments in St Peters at $11,204.60, while rents sit at $3349.67, tenants will have until January 2059 before the market favours buyers.

That time blows out to February 2060 in the event interest rates rise to 6.1 per cent.

Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin

Turner Real Estate chief executive officer Emma Slape said as house prices have continued to grow, she was not surprised the gap between rents and mortgage repayments was broadening.

“Combined with needing a deposit to make the first move, the time taken to get to the point of homeownership is getting longer,” she said.

“Renting is a really personal decision, often made for a range of different reasons, not just financial.

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“People may want to live in the area for a school zone, to be closer to family or to be near their employment.

“Finances are one factor of course, but it’s not the sole reason.

“For many, renting is a great choice to suit their lifestyle or current needs.”

REA Group senior economist Anne Flaherty

REA Group senior economist Anne Flaherty said the speed at which rents are rising in Australia’s capital cities has slowed from a year ago, though remains elevated in regional areas.

“Rents were sitting at record highs in every market in December and are expected to reach new records in 2026.

“While rent growth is expected to continue moderating in 2026, vacancy rates remain low and population growth will fuel demand for more rentals.”

Isabelle Robinson, 26 and Jacob Johnson-Firth, 30 and looking for a rental. Picture: Eleni Tzanos

Isabelle Robinson, 26 and her partner Jacob Johnson-Firth, 30, are currently renting in Edwardstown and looking for another rental as they have to vacate theirs later this month.

“We’re renting because we can’t afford to buy because with the large deposit you have to put down and then repayments on that and interest, you end up paying so much more than the initial upfront cost advertised,” she said.

“I don’t mind renting at all – there are some aspects that aren’t ideal, but it can give you access to areas that you wouldn’t be able to afford to buy in.”