Why is Adelaide the second most unaffordable capital city for renters?
According to the Rental Affordability Index RAI), Adelaide house prices tail only Hobart in being the most unaffordable. Experts believe rising rent is only one part of the problem. The incomes aren’t growing in Adelaide, like they are in Sydney.
However, if we focus on rent prices alone, Adelaide does fair well in comparison to other cities. In Adelaide, the current median rental price for a three-bedroom home is $510. But of course, there are more affordable regions, with easy accessibility to the city.
Rentals in Adelaide Hills
A short 30-minute drive from the heart of the city, Mount Barker offers great savings with $375 median rent. Houses in nearby Littlehampton are sitting at a $360 median rent, with Nairne at $345, and Strathalbyn even more affordable at $330. This is up to $180 (per week) less than the Adelaide city area.
The benefits of renting in a region like the Adelaide Hills means it opens up the doors to home ownership. Using Mount Barker as an example, the median price for a three-bedroom house on the market is $427,000 vs. $680,000 for that same property in the city. This $253,000 saving might be the difference between a family buying a house, instead of having to rent for decades.
In fact, this month, the Federal Government will launch the new scheme to encourage first home buyers into the property market. In South Australia, the Government will offer loan guarantees on properties worth up to $400,000 (in Adelaide and regional centres). And yes, there are properties in the affordable Adelaide Hills under $400,000.
While there’s no denying that parts of South Australia are more expensive than others, to blanket every region as ‘unaffordable’ is untrue. Regardless, if you rent or plan to buy a house, it’s important to do your research, understand trends, and consider details beyond just the numbers. Adelaide Hills property prices differ greatly from the CBD.
The Adelaide Hills offers an incredible lifestyle, one that can’t be beaten in a city environment. Consider re-locating to Mount Barker, Nairne, Littlehampton or Strathalbyn. Whether you want to continue renting or would like advice on buying a home, Nitschke’s real estate agents are here to help.
