Artwork for rental affordability story.
Rental affordability across South Australia has reached its lowest level in nearly two decades, with most of its deterioration recorded since the Covid pandemic.
Adelaide’s median advertised rent was 62 per cent higher by the end of 2025 compared to the same time in 2019, the latest realestate.com.au rental affordability index report reveals.
Despite being one of the lower income states, the median advertised rent stands at $600 per week – making it the second-least affordable state for tenants behind NSW.
The report shows a South Australian household earning median income for the state, which is about $102,000, could afford to lease just 19 per cent of all rentals advertised over July to December 2025.
The rate of rent growth has slowed over the past year, which Turner Real Estate chief executive Emma Slape said was a clear sign the market was softening.
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Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin.
“In the last six months, we have been seeing massive pushback on properties that are overpriced, and they will sit on the market,” she said.
“There’s just no capacity for people to pay more.
“Tenants don’t want to commit to something that’s overpriced and they don’t want to stretch themselves financially.”
Ms Slape said people were doing whatever they could to cope at a time when the cost of living was constantly rising.
“People are making do with where they are – we’re definitely seeing people renew their lease a lot more,” she said.
“We’re finding people are breaking their lease because they’re making the most of first-home buyer incentives, some are breaking their lease to downsize too.”
While rent growth had been rapid over the past six years, Ms Slape said it was a far cry from the five years prior when there been “very little increase”.
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REA Group senior economist Angus Moore. Picture: Supplied.
Some rentals were sitting empty for months, she said, while others were being leased for much less than they had previously.
REA Group senior economist and report author Angus Moore said rental affordability had fallen to a record low right across the country, with Australian tenants facing the toughest conditions since at least 2008.
“A median income household in Australia could afford to rent just 37 per cent of the advertised rentals on realestate.com.au between July and December 2025,” he said.
“Thankfully, there are signs conditions are improving for renters.
“Rental availability improved over 2025 in most capitals, and rent growth, while still solid, has slowed from the peaks seen in 2022 and 2023.
“However, rental affordability will remain at incredibly low levels in the year ahead.”
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