New data exposes the housing crisis for young buyers in Adelaide – realestate.com.au

New data has revealed just how difficult it is for first home buyers to enter the market.

Data from FOUNDIT – a property market research company – which analyzed agent-advised residential sales in 2025, shows that only 5.22 per cent of all sales in metropolitan Adelaide were in the sub-$500,000 price range.

The dominant price range was $750,000 to $1 million, accounting for 35.72 percent of all sales.

It is closely followed by $500,000 to $750,000, accounting for about 30.92 percent of all sales.

Those looking to buy in the $1 million to $1.25 million bracket could choose from 13.12 per cent of Adelaide’s listings, while 6.91 per cent of all properties were in the $1.25 million to $1.5 million bracket.

Regional South Australia, on the other hand, offered much more choice for those on a budget, with 83.74 percent of all sales in 2025 under $750,000, and 51.67 percent of those under $500,000.

Head of research Kent Lardner said in the report that the $500,000 to $1 million price range was the real “engine room of the city.”

“This supply continues to support detached and family-oriented housing within the metropolitan footprint, without the need for extreme commuting or reliance on high-density apartments,” the report said.

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“As a result, Adelaide avoids the double pressures we see elsewhere: it doesn’t have to push buyers far to the edge, nor does it rely heavily on apartments to maintain proximity.

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

Mr Lardner said the market above $1 million is rapidly thinning, with transactions above $3 million statistically negligible, due to a hard income-based cap.

Aerial view of Glenelg, showing Stamford Grand. Image: supplied

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He added that Adelaide’s affordability had not persisted by accident.

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

“The middle remains wide, the extremes are thin and buyers are less forced to make compromises.

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

REISA CEO Andrea Heading. Delivered

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

“If you look at the number of suburbs with very little or no sales activity in the fourth quarter of 2025, it tells a clear story about inventory availability,” Heading said.

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“Buyers are active, but there are simply not enough homes coming onto the market in many areas to meet that demand.

“These types of environments obviously support prices.

“It is not about rapid or artificial price growth, but about limited supply interacting with steady demand, especially in established and lifestyle-oriented suburbs.”